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FRONT. 


BACK, 


Trials  and 'Triumph 


NEEDLE'S  EYE 


OF 


MARSHALL,  MO. 
CAPITAL  PARLOR  PRINT, 
1890. 


COPYRmHT,  1890. 
By  G.  B.  De  BERNARDI. 


All  Rights  Reserved. 


AN  APOLOGY 


Before  tlie  reader  undertakes  tlie  task  of  \h'v- 
iisiiig  this  kook,  Ave  desire  to  beg  liis  iiuliilgeiiee  on 
its  many  faults,  but  espeeially  on  tkn^  wearisouie 
repetitions  to  be  found  in  tlie  same.  In  our  at- 
tempt to  explain  verbally^  tlie  })iinciples  lu  i-ein 
contained,  we  found  that,  while  an  aigunu'nt  or 
illustration  in  one  form  would  reach  some  mnuls, 
others  would  only  be  struck  wlun  };resented  in  an- 
other  form  and  still  others  could  only  cim^preherid 
it  when  coming  to  tliem  in  a  th.ird  and  otluM* 
channel.  Our  object  is  to  be  understood  by  as 
many  as  possible,  and  henc-^  })ref(M'  to  subject  our- 
selves to  the  criticism  of  redundancy  rather  than 
brevity.  The  reader  wdio  becomes  imbued  with 
^  the  within  truths  will,  we  feel  sure,  realize  tlnnr 
importance  and  grant  us  the  privilege  of  reacliing 
others  by  a  variety  of  metliods. 

We  desire  also  to  state  that  no  refiection  is  her<^ 
intended  on  legislators  or  governments.  AVe  an' 
aware  that  laws  are  not  made  but  (jkoav  ;  that 
they  are  tlu^  manifestation  of  gcvneral  habits,  cus- 
toms and  social  needs.  The  nKuu^tary  system  of 
(1) 

372544 


An  Apology. 


civilization  is  the  natural  result  of  ancient  methods 
of  exchange.  Our  money  originated  in  periods  of 
universal  insecurit}^  of  life  and  property.  In  such 
periods  surpluses  of  property,  however  useful  and 
desirable,  if  they  could  not  be  carried  away,  ab- 
sconded or  preserved,  were  utterly  worthless,  while 
other  articles,  though  useless  for  purposes  of  life, 
but  pleasing  to  the  eye,  portable  and  imperishable, 
arose  into  high  esteem.  The  ages  of  social  chaos 
and  continuous  wars  gave  value  to  precious  stones 
which,  in  time,  became  mediums  of  exchange. 

The  greatest  revolution  in  industry  and  com- 
merce took  place  when  precious  stones  were  elevat- 
ed, by  law,  into  mediums  of  payment,  or  sole  legal 
tender. 

This  line  of  evolution  developed  alike  in  all  coun- 
tries and  under  all  forms  of  political  institutions. 
It  is  therefore  at  least  presumable  that  such  prog- 
ress was  in  analogy  with  the  condition  of  things, 
and  that  no  man,  class  or  nation  should  be  held 
responsible  for  the  fact  and  its  consequences.  What 
we  contend  for  in  the  following  pages  is  that  the 
precious  stones  of  our  ancestors  are  no  longer 
necessary  or  useful  to  the  present  stage  of  civiliza- 
tion, but  are,  on  the  contrary,  a  positive  impedi- 
ment to  future  progress. 

With  good  will  for  the  Toilers  of  the  Earth,  and 
with  malice  towards  none,  we  proceed. 


PREFACE. 


Two  powers  have,  in  all  ages  of  which  we  have 
aii}^  record  controlled  and  robbed  the  hive  of  laboi', 
viz  :  despotism  and  money.  Labor  has  ever  been 
the  victim  of  conquest  or  purchase.  In  ancient 
times  a  band  of  marauders  would  invade  a  country, 
possess  themselves  of  all  there  was  in  it,  enslave  its 
inhabitants  and  put  them  to  work,  while  the  in- 
vaders would  constitute  themselves  into  an  "  uppei' 
class  composed  of  civil  rulers  and  military  chief- 
tains, whose  duty  it  was  to  make  the  laws, 
govern,  suppress  insurrection  within,  and  resist 
invasion  from  without.  Under  despotism  the 
working  classes  had  no  rights  which  the  upper 
classes  felt  bound  to  respect.  Their  persons  be- 
longed generally  to  the  king  and  their  labor  to 
lords.  No  progress  could  be  expected  from  beings 
so  situated.  On  the  part  of  the  ruling  class  social 
improvements  consisted  in  so  depressing  aspirations 
in  the  slaves  as  to  become  resigned  to  tlieir  con- 
dition, work  without  supervision,  keep  one  another 
into  subjection  by  a  police  force  raised  from  their 
own  class,  and  be  willing  to  assist  their  mastei's 
against  foreign  invasion,  the  which  went  by  the 

(3) 


4 


Preface. 


name  of  patriotisin.  When  tlie  conquered  people 
had  been  reduced  to  such  point  of  Hubmission,  des- 
potism would  be  considered  established  on  a  solid 
and  permanent  foundation.  The  toilers  toiled  and 
the  rulers  enjoyed  in  luxuries  and  dissipation. 

Despotism  in  Europe  reached  its  meridian  of 
splendor  and  glory  in  the  reign  of  Louis  the  XIV, 
King  of  France,  last  century.  It  received  its  death- 
blow at  the  French  Revolution,  in  1789,  and  has 
since  been  on  the  decline.  Its  sun  will,  we  believe, 
soon  sink  beyond  \he  political  horizon,  there  to  re- 
main forever. 

Side  by  side  with  despotism  arose  and  grew  the 
money-power.  This  power  had  a  different  origin 
and  operates  differently  from  despotism.  It  does 
not  invade,  but  invests ;  it  does,  not  conquer, 
but  acquires ;  it  does  not  govern,  but  manages  the 
producing  classes.  It  has  been  free  from  insurrec- 
tion and  invasion,  hence  has  been  more  general, 
more  lasting  and  more  baneful  in  its  effects  than 
despotism  and  will  be  harder  to  suppress,  as  its 
means  of  subjugation  are  milder  and  more  insidi- 
ous, and  its  victims  attribute  their  misfortune  to 
their  own  voluntary  acts.  Despotism  built  upon 
the  ignorance  of  its  victims  and  relied  for  support 
on  military  force ;  hence  it  melted  in  the  presence 
of  advancing  civilization.  The  money  power,  on 
the  contrary,  thrives  most  as  civilization  is  advanc- 
ing, for  it  builds  on  mental  cunning  and  relies  on 


Preface. 


laws  of  its  own  making.  Under  (le8])olisni  social 
stations  are  fixed  ;  no  one  expe(;ting  to  ris(^  above 
nor  fearing  to  sink  below  his  class,  while  in  the 
meshes  of  the  money-power  every  one  is  aspiring 
and  strnggling  to  reacli  a  station,  where  he  may 
live  in  atHuenee  on  the  fruit  of  his  neighbors'  Un\. 
Despotism  is  no  longer  dreaded,  while  the  i)ressure 
of  the  money -power  is  just  beginning  to  be  felt, 
but  not  yet  understood.  The  toiling  masses  groan 
and  lament  their  losses,  but  are  yet  at  a  loss  what 
to  do.  As  despotism  in  1789,  so  is  the  money-pow- 
er at  its  zenith  now.  Hereafter  it  will  be  impossi- 
ble to  surpass  the  millionaires  and  financial  monopo- 
lies of  our  day.  They  control  governnu^nts  and  peo- 
ple, and  absorb  all  the  benefits  of  civilization.  Such 
power  can  rise  no  higher,  nor  renuxin  stationary  ; 
lience,  following  the  destiny  of  all  things  temporaL 
is  doomed  to  decline  and  set,  also  to  rise  no  more. 

With  the  downfall  of  despotism  and  the  money- 
power  will  end  the  struggle  for  existencp:  among 
rational  beings.  War  aiul  speculation,  invasions 
and  investments,  conquests  and  acquisitions  will  no 
longer  build  thrones  and  fortunes  upon  a  golgotaof 
human  miser3^ 

In  the  dim  distance  we  discern  already  the 
dawn  of  Labor's  day.  Yes,  the  evening  of  the 
money-power  and  the  morning  of  Labor's  day,  the 
setting  of  the  Dark  Ages  of  industrial  chaos,  op- 
pression and  plunder  and  the  rising  of  industrial 


6 


Preface. 


liberty  and  eqiiit}'  are  the  evening  and  morning  of 
our  social  horizon. 

This  humble  production  is  intended  to  point  out 
the  above  facts  succinctly  and  direct  the  attention 
of  tlie  oppressed  to  the  only  road  which  promises 
to  lead  them  peacefully  to  libei'ty  and  affluence. 

Meantime  we  are  preparing  a  larger  work  upon 

the  ''ORIGIN   AND  PROGRESS  OF  THE  MONEY  POWER.'' 

There  cari  be  no  department  of  human  develop- 
ment nu)re  interesting  to  the  moralist,  the 
philanrhropist  and  the  student  of  social  evolution 
than  the  investigation  of  such  an  extraordinai'v 
phenomenon  as  the  empire  of  metals  over  men. 
It  seems  incompatible  with  human  instinct  and 
reas(m  both,  that  two  metals,  gold  and  silver,  which 
by  nature  are  not  fit  to  supply  the  least  of  Jiuman 
wants,  should  have  ascended  to  be  rulers  over  man. 
Yet  so  it  is,  and  no  empire,  ancient  or  modern,  has 
lasted  so  long  or  ruled  so  universally  and  wielded 
such  influence  over  the  destiny  of  the  human  race 
as  gold  and  silver.  These 'metals  are  to-day  the 
longed  for  angels  of  blessing  by  all  nations.  Their 
arrival  or  depai'tiire  bears  tlu^  weal  or  woe  of 
millions. 


OBJECT  OF  THE  WORK. 


Herein  we  purpose  to  demonstrate  the  following 
important  truths,  viz  : 

1st.  That  the  power  oi  precious  metals  is  not  an 
inherent  quality  of  those  metals,  but  in  the  law 
which  vested  them  with  the  royal  prerogatives  of 

LEGAL  TENDER.'' 

2d.  That  the  vast  inequalities  of  fortunes,  the 
hardships  of  the  multitude  to  obtain  a  bare  living 
and  widespread  poverty  and  want  are  mainly  due 
to  this  barbarous  monetary  system  based  upon  the 
law  of  "legal  tender." 

3d.  That  a  rational  monetary  system  should  be 
purely  a  method  of  accounts,  independent  of  any 
material  on  w^hich  these  accounts  may  be  recorded, 
and  thus  not  affect  the  commercial  values  of  the 
commodities  and  services  exchanged. 

4th.  That  the  workers  in  industry  and  commerce 
have  it  in  their  power  by  and  through  a  proper  sys- 
system  of  co-operative  production  and  mutual  ex- 
change, t©  liberate  themselves  from  the  restrictions 
and  exactions  imposed  upon  them  by  the  money 
power. 

To  the  fulfillment  of  the  above  possibility  is  this 

(7) 


8 


Objevi  of  the  Work. 


little  book  devoted,  in  t)ie  firm  belief  that,  with 
such  reform,  the  human  i-ace  will  enter  upo*n  ari  era 
of  continuous  progress  and  prosperity,  uninterru])- 
ted  by  monetary  deficiencies  or  financial  cataclysms. 


THE  CENTRAL  QUESTION. 


The  question  of  Labor  in  Ameriea  in  purely  a 
question  of  money,  and  not  of  pi-ivate  ownershi}) 
of  land,  as  Ht^^nry  George  and  bis  followers  believe. 
When  the  land  becomes  the  property  of  a  few.  if 
such  be  tolerated  under  our  political  institutions, 
then  the  question  of  labor,  and  with  it  the  ques- 
tions of  political  and  personal  liberty,  will  become 
questions  of  land  and  money  both,  and  revolution 
alone  would  be  able  to  solve  them.  The  spirit  of 
liberty,  however,  imbibed  from  centuries  of  educa- 
tion and  training,  is  too  deeply  rooted  in  the 
American  citizen  to  ever  permit  a  landed  aristocracy 
either  to  drive  him  from  the  land  or  compel  him  to 
cultivate  it  in  servitude. 

At  present  we  are  yet  at  a  distance  from  such 
condition  of  things ;  hence  we  assert  that  the  only 
question  which  concerns  us  is  the  question  of 
money.  Nay,  we  will  add  that  legal  tendek 
MONEY  has  ever  been  and  yet  is,  in  all  civilized 
countries,  the  crucible  into  which  the  products  of 
labor  are  melted  and  hence  run  into  the  coffers  of 
speculators.  It  is  the  most  exacting  superstition 
that  ever  obtained  control  of  the  human  intellect 
(9) 


10 


Tlie  Central  Question. 


and  lield  man  in  bondage  for  centuries;  it  in  the 
UPAS  TREE  which  bears  most  of  the  social  and  all  of 
the  financial  ills  to  which  man  falls  heir.  The 
deplorable  condition  of  the  working  classes,  the 
immense  disparity  of  social  positions,  oppressive 
nu)nopalies  and  trusts,  insecurity  of  enterprises, 
financial  embarassments,  failures,  distress,  pover- 
ty, misery  and  the  modern  method  of  reducing  to 
bondage  the  living  and  the  unborn  are  all  fruits  of 
the  same  tree.  Yes,  legal  tender  mone}^  "  has 
been  and  is,  more  than  ever  before,  in  all  countries, 
and  under  all  forms  of  government,  a  power  over- 
shadowing landlordism  and  all  social  questions 
combined,  in  regard  to  the  equitable  or  iniquitous 
distribution  of  wealth.  We  deem  it  absolutely 
necessary  to  correct  the  monetary  system,  if  land- 
lordism is  to  be  avoided  and  liberty  itself  maintain- 
ed. Our  forefathers  were  all  owners  of  the  soil 
they  cultivated  ;  but  legal  tender  money,  in  control 
of  tlie  markets  and  dictating  prices,  absorbed  the 
profits  thereof,  then  by  a  system  of  loans,  mortga- 
ges and  foreclosures,  is  fast  absorbing  the  land  also. 
If  landlords  in  England  had  not  been  entrenched 
behind  a  law  of  entail,  but  open  to  the  batteries  of 
tlie  money  power,  there  would  not  be  now  one 
original  owner  in  possession  of  his  estates.  Hence, 
as  long  as  this  monetary  system  and  financial  laws 
exist,  give  us  enough  legal  tender  money  and, 


TJic  Cnntral  Oucsiion. 


without  disturbing  vestinl  riglits,  or  interfering 
with  social  relations,  noi-  causing  one  rij)ple  U])on 
the  political  or  religious  hoi'izon,  we  will  liV)ei'ate 
the  working  classes  at  once,  in  all  departnuMits  of 
industry,  from  their  uncertain,  u n comfortable,. i*est- 
less  and  abject  c<^>ndition.    Give  us  money,  and 
without  fear  of  overproduction,  we  will  em])lov 
every  man  and  woman  at  remunerative  wages;  we 
will  buy  or  build  railroads,  clear  our  navigable 
rivers  and  cover  them  witli  steamboats  and  barges  ; 
and  we  will  place  a  merchant  marine  on  the  ocean 
and  th.ere  compete  with    any    nation.    Give  us 
money  and  we  will  flood  the  markets  of  the  w^orld 
with  American  goods  and  supply  America  with  all 
the  comforts  that  the  world  can  afford.    We  will 
buy  or  open  mines,  purchase  or  build  factories  and 
mills  and  install  in  a  commodious  and  elegant  home 
every  family  in  the  land.    Give  us  money  and  we 
will   purcliase  land  enough  to  produce  food  for 
twice  our  population,  and,  by  withdi-awing  sei^vih* 
or  hired  labor  from  the  balance,  force  its  cultivation 
or  sale  also.    Finally  give  us  money  and  we  will 
put  an  end  forever  to  the  contest  now  rising  between 
capital  and  labor,  and  no  more  will  be  heard  oi' 
monopolies,  of  high  and  low  tariffs,  of  liigh  and 
low  wages,  of  high  and  low  prices,  nor  of  strikes. 
boy(M)tts,  lockups,  hard    times,  panics,  financial 
crises,  commercial  failures,  distress,  poverty,  fam- 


12 


The  Central  Question. 


iue,  riots  and  revolution.  Scarcity  of  monc}^  is  the 
fruitful  source  of  all  these. 

This  world  is  great,  grand,  beautiful  and  rich  in 
ail  things  necessary  to  man's  well-being.  Labor  is 
able  and  willing  to  explore  it,  to  extract  from  it 
wealth  enough  to  supply  the  wants  of  every  human 
being.  Money  is  the  only  thing  lacking  to  set 
Labor  in  motion  and  open  up  these  vast  and  inex- 
haustible natural  stores ;  hence  we  repeat,  give  us 
money  and  universal  prosperity  will  follow. 

Every  man  of  ordinary  intelligence,  not  only 
believes,  but  positively  knows  the  above  asser- 
tions and  possibilities  to  be  correct.  He  knows 
that,  with  money,  he  could  liberate  every  family 
now  grieving  and  groaning  under  the  burden  of  a 
mortgage,  which  threatens  to  bear  away  their  homes, 
that  he  could  employ  every  worker,  drive  the  wolf 
from  every  door,  wipe  out  from  every  heart  the 
dread  of  poverty  with  its  attendant  evils,  and  fill 
every  home  with  abundance  and  joy.  And  no 
•grander  and  nobler  work  could  be  done  on  earth. 

Thus  it  is  manifest  that  the  problem  of  labor, 
and  with  it  the  still  greater  problems  of  human 
development  and  human  happiness,  depend  upon 
the  procurement  of  money  or  the  discovery  of 
something  or  some  method  which  may  fill  the 
functions  of  money  in  industry  and  exchange.  Thus 
express  the  condition  more  forcibly,  the  progress, 


pi'()S})erity  aiul  well-bcMiig  of  tlie  liuinan  race, 
as  laws,  luibits  and  (nlucatioii  now  stand,  are  made 
to  depend,  not  upon  the  l)()unties  of  natui-e  nor 
upon  the  genius  and  ability  of  man,  but  upon  tin* 
presence  of  an  inert  useless  metal,  (^kn^ated  into 
legal  tender  nu)ney.  Bueh  lias  been  the  wisdom  of 
men  for  ages. 

Impressed  with  the  foregoing  trutlis,  we  deem  it 
useless  for  labor  associations  to  waste  valuable  t  ime 
and  precious  means  in  searching  elsewhere,  but  in 
the  essence  and  functions  of  money,  for  the  desired 
solution  of  the  labor  problem.  Here  let  us  make 
our  meaning  plain  by  illustration.  If  a  small 
squad  of  soldiers,  through  some  peculiar  weapon, 
drill  or  strategy  of  their  own  invention,  had  con- 
quered all  the  nations  of  the  earth  and  continued 
to  hold  these  nations  in  subjection,  extorting  from 
them  heavy  tribute,  (as  the  mone}^  power  has  done 
and  is  doing),  should  it  not  be  the  imperative  duty 
of  these  nations,  in  self  defense,  to  examine  care- 
fully and  endeav^or  to  master  that  peculiar  weapon, 
drill  or  strategy,  which  has  enabled  those  few  to 
carry  destruction  in  their  midst?  Or,  if  a  few 
men,  endowed  with  no  superior  physical  or  mental 
ability  than  others,  yet,  by  the  use  of  some  peculiar 
machine,  method,  ingredient  or  device,  had  been 
enabled  to  reach  a  position  of  gi^eat  ease,  comfort 
and  enjoyment,  at  the  expense  of  their  fellow^  men. 


14 


The  Central  Qi(e!^fi())i. 


(as  mone}^  iiuiiupulators  have  done  and  are  doing 
in  all  countries),  sliould  it  not  be  the  imperative 
duty  of  the  victims,  who  long  for  these  same 
blessings  foi*  themselves,  to  look  into  the  mysterious 
machine,  method,  ingredient  or  device  that  gave 
their  neighbors  such  control  over  their  destiny? 
Now  is  it  not  true  that  a  comparatively  small  squad 
of  so-called  capitalists  have  been  and  are  to~da3% 
more  than  evei-,  the  band  of  soldiers,  who,  without 
risk  of  lif(^  or  limb,  have  conquered  the  world, 
governments  and  govei*ned  and  hold  both  under 
tribute  ?  Time  was  when  rulers,  warriors  and 
priests,  governments,  armies  and  religions  were 
entirely  independent  of  a  money  power;  but  we 
know  that  for  centuries  this  power  has  been  grow- 
ing in  magnitude  and  tightiMiing  its  meshes  around 
them,  and  now  there  is  no  potentate,  statesman  or 
pope  wiio  dares  to  disregard  it.  There  is  no  gov- 
ernment foolish  enough  to  attempt  to  move  witliout 
its  aid  ;  no  civmj  could  make  headway  agaiiist  it. 
and  all  religions  niust  consult  it  and  abide  its  be- 
hests. Consequently  is  it  not  true  that  this  small 
band  of  money  manipulators  have  captured  mo&t 
of  the  sources  of  production  and  inter-comunica- 
tion,  so  that  the  actual  designers  and  builders  of  all 
the  comibi-ts  and  luxuries  ol'  which  civilization  can 
boast,  are  actually  in  a  state  of  siege,  unable  to 
o[)erate  without  permission  from  the  money  power. 


The 


(\')iii'(iJ  (^((('sfioK. 


and  compelled  to  pay  tribute  for  that  permission  ? 
Plnally,  is  it  not  true  tiiat  legal  tender  monc^N  ** 
is  the  weapon  and  a  barbarous  monetary  system, 
inherited  from  tlu^  Dark  Ag(is,  is  the  maehin(M*v  in 
the  hands  of  capitalists  and  speculators,  where- 
with this  unhol}^, obstructive  and  destructive  warfare 
against  industry  is  conducted?  Yes,  a  small  body 
of  skillful  captains  of  mone}^,  generally  infe- 
rior in  talent,  in  literary  attainments,  in  inventive 
genius,  in  mechanical  skill  and  in  all  tliose  no1)le 
qualifications  upon  which  is  based  tlie  onward 
march  of  the  human  race  and  to  which  alone  are 
due  the  great  achievements  of  all  times,  are  to-day, 
be  it  said  to  our  everlasting  shame,  masters  and 
I'ulers  of  mankind  ;  while  poor,  benighted,  crushed 
Labor,  from  the  hod-carrier  to  profess(jrs  in  univei*- 
sities,  move  or  halt,  enjoy  or  suffer  at  money's 
bidding  !  Is  it  not  then  high  time  that  the 
hosts  of  producers,  builders,  merchants,  educators 
and  all  useful  classes  should  awake  from  their 
slumber,  open  their  eyes  on  this  monetary  system, 
brush  off  their  inveterate  prejudices  and  find  by 
what  magical  jugglery  those  few  manipulators  of 
so  insignificant  a  thing  as  money  is,  without  per- 
forming one  single  useful  industrial  act,  have 
reached  and  maintain  so  lofty  a  position  and 
mastery  over  their  fellow  men?  At  such  awake- 
ning it  will  be  found  that  within  the  monetary 


16 


The  CeniiaJ  Question. 


S3^Hteiu  alone  hides  the  wolf  which  in 
eivilizaiion  is  devonring  the  flocks  and  frnit  of 
industry  ;  that  from  this  system  issues  the  serpent 
which  holds  witliin  its  coils  the  mortgaged  homes 
of  millions,  that  causes  those  periodical  cyclones  oi- 
panics,  which  scatter  the  accumulations  of  a  life- 
time to  the  four  winds  of  heaven,  followinl  by 
prostration  of  business  and  wide  s[)read  ruin  and 
desolation. 

The  truth,  of  the  above  assertions  is  attested  by 
history  and  living  facts ;  yet  not  one  writer  of 
eminence  on  the  subject,  that  we  have  read,  points 
to  LEGAL  TENDER  money  as  the  root  of  all  (^vils. 
We  shall  humbly  undei'take  to  do  what  we  can 
towards  elucidating  these  facts  and  leave  the 
subject  to  better  intellects  to  complete.  * 


POWER  OF  MONEY. 


It  cannot  be  for  a  moment  supposed  that  the 
extraordinary  power  of  money  is  an  inherent  qual- 
ity of  gold,  silver  or  any  other  material  out  of 
which  money  is  coined  or  stamped.  Nor  do  such 
matei*ials  acquire  that  power  from  their  use  as 
MEDIUMS  of  exchange  or  units  of  value.  ISTo,  the 
power  of  gold  and  silver  is  vested  in  them  and 
there  upheld  by  one  of  the  most  tyrannical  and,  at 
the  same  time,  most  absurd  edicts  that  ever  eman- 
ated from  mortal  man.  It  is  based,  as  we  stated, 
upon  the  royal  prerogative  of  sole  legal  tender 
in  payment  of  debts,  taxes,  fines,  satisfaction  of 
judgments  and  the  liquidation  of  estates.  Raise  a 
man,  by  law,  above  the  law,  declare  him  "sacred 
AND  INVIOLABLE,"  as  royalty  is  elevated,  and  that 
one  edict  will  sink  a  whole  nation  into  the  abject 
condition  of  "  SUB.JECTS.''  What  is  true  of  men  is 
equall}^  true  of  wealth,  upon  which  men  subsist. 
Crown  one  article  legal  tender  and  the  myriads 
other  articles  will  at  once  sink  into  financial  sub- 
jection to  it,  and  a  monopoly  of  such  article  will 
control  in  absolute  the  production  and  distribution 

(17) 


18 


Poiver  of  31oney. 


of  all  wealth.  Civilization  has  long  since  become 
conscious  of  the  baneful  prerogative  vested  in 
royalty,  and  millions  have  perished  in  attempts  to 
abolish  it  by  revolution.  But  this  same  civilization 
is  not  as  yet  conscious  of  the  financial  power 
vested  by  law  in  gold  and  silver  ;  yet  the  prerogative 
bestowed  upon  these  metals  is  far  mightier  and 
more  pernicious  in  its  effects  than  that  bestowed 
upon  rulers,  as  relative  conditions  at  the  present 
attest.  These  two  powers  have  co-existed  for  cen- 
turies, and  which  one  has  gained  the  ascendency 
over  the  other?  Is  not  the  creature,  money, 
mightier  than  its  creator  despotism  ?  The  answer 
to  this  question  was  very  forcibly  given  by 
Baron  Rothchild,  of  London,  on  the  occasion  of  a 
loan  asked  for  by  Austria.  Time  was,"  he  said, 
'•when  every  Jew  had  a  king"  (abusing  him), 
"  now  ever}^  king  has  a  Jew  "  (to  loan  him  money). 
And  again  in  this  country  w^e  had  a  proof  when 
the  Geneva  Commission  awarded  fourteen  millions 
to  the  United  States  for  damages  done  by  the 
Alabama  during  the  rebellion.  The  Bank  of 
England  notified  the  authorities  of  the  United 
States  that,  if  they  attempted  to  move  that  amount 
of  money  bodily,  the  whole  power  of  that  insti- 
tution would  be  arrayed  against  this  nation."  Had 
it  been  the  government  of  England  making  such  a 
threat,  we  all  know  what  this  nation  would  have 


Foirer  of  Money. 


19 


done  ;  but  the  comiiiand  came  from  a.  greater  power, 
the  money  power,  and  our  government  bowed  in 
submivssion  to  it.  Liberty  follows  mone3\  A  man  with 
money  is  free  under  all  governments  ;  a  moneyless 
man  is  dependent  ever^^where.  So  is  it  of  a  gov- 
ernment. A  bonded  nation  is  not  sovereign. 
Personal  and  civil  liberty  nevei-  will  exist  in  its 
fullness  under  a  money  power.  Nor  will  progress 
i-each  its  full  capacity  of  development  as  long  as  it 
is  forced  to  pass  through  the  IN^eedle's  Eye  "  of 
legal  tender  money. 


STRANGE, 


How  a  few  glittering  grains  of  useless  metals, 
found  accidental) y  by  savages  am^ng  tlie  sands  of 
mountain  rivers  and  used  to  gratify  a  low  instinct 
for  ornaments,  ascended  to  a  legal  throne,  whence 
they  control  human  activity  and,  through  it,  the 
progress  and  prosperity  of  mankind,  is  one  of  those 
problems  which  philosophers  have  so  far  neglected, 
but  a  problem  too  important  to  longer  evade  the 
crucible  of  modern  universal  investigation.  These 
are  times  when  all  institutions,  however  sacred 
or  made  venerable  by  age,  will  be  put  to  the 
severest  test,  and  the  question,  what  are  gold  and 
silver,"  or  what  is  money,  that  men  should  bow 
to,  or  be  hampered  by  it,"  will  demand  a  more 
logical  answer  than  has  hitherto  been  given  by 
political  economists  and  financiers.  The  attributes 
lavishly  bestowed  upon  these  so-called  precious 
metals,"  as  "  mediums  of  exchange,"  representa- 
tives of  wealth,"  '^measures  of  value,"  ^'standards 
of  value,"  etc.,  will  no  longer  cover  their  deformi- 
ties as  the  greatest  ^'  mediums  of  robbery,  " 
breeders  of  commercial  panics "  and  instru- 

(20) 


Sirayuje. 


21 


nients  of  modern  and  future  slavery.''  AVlieu 
science  cleiirw  away  tlu^  mists  wliicli  liavc^  befoi^ged 
the  essence  of  tliose  metals  for  centuries,  tlun'  will 
stand  revealed  the  mere  creatures  of  legal  tyi'ann}' 
and  universal  folly ;  tlie  heaviest  incubus  on  the 
growth  of  progress  and  the  mightiest  means  of 
robbing,  in  civilization. 

Tear  away  the  legal  mask  from  over  them,  de 
montize  them  and  they  will  shrink  back  to  the 
place  assigned  to  them  by  natui*e  and  cease 
hamper  progress  and  torture  tlie  human  race. 

EXPLANATIOiS. 

Before  we  proceed,  how^ever,  to  demonstrate  the 
force  of  those  tw^o,  apparently,  harmless  words, 

LEGAL. TENDER,"  vcstcd  ou  gold  and  silver,  it  may 
be  well  to  remark  that  the  decree,  which  created 
them  such,  comes  to  us  as  a  wolf  in  sheeps  clothes, 
as  the  devil  w^earing  the  livery  of  heaven.  It  comes 
undei-  the  guise  of  a  benefactor  to  the  debtor  class, 
while  in  fact  it  proves  an  object  of  terror  to  that 
class,  bringing  millions  of  them  to  ruin  and  deso- 
lation, and  the  bearer  of  immense  fortunes  to  the 
CREDITOR  class.  The  formula  ''legal  tender" 
feigns  to  imply  the  legal  right  of  the  debtor  to 
compel  his  creditor  to  accept  that  one  article  in 
satisfaction  of  the  debt  ;  but,  on  the  conti*ary.  the 
true  force  of  the  law  is  to  enable  the  creditor  to 


2^2 


Strange. 


refuse  aii\^  and  all  other  articles,  and  compel  his 
debtor  to  produce  or  procure  the  pi'ivileged  one,  at 
whatever  sacrifice  he  may  be  subjected  to,  and,  in 
case  of  failui'e,  suffer  distress.  Whoever  heard  of 
a  debtor  having  to  compel  his  creditor  to  accept 
the  legal  tender  "  commodity,  be  it  gold,  silver  oi- 
paper?  On  the  other  side,  who  has  not  witnessed 
thousands  of  instances  when  the  debtor  offered  his 
creditor  otlier  property,  at  reduced  value,  which, 
the  creditor  refused  to  accept  and  pressed  said 
debtor  to  ruin  under  the  sheriff's  hammer?  What 
causes  universal  terror  in  times  of  financial  crises? 
Is  it  lack  of  wealth  or  lat^k  of  legal  tender 
money?  The  wealth  is  ever  there;  legal  tender  is 
the  missing  element.  During  the  panic  of  1873 
commercial  houses  and  bankers  of  New  York 
entreated  the  government  at  Wasliington  to  let  loose 
those  two  bales  of  legal  tender  greenback  paper 
money  held  for,  no  one  knew,  wha\  object  in  the 
treasuiy.  asserting  that  said  money  would  check 
the  financial  cyclone.  The  petitioners  were  good 
judges  of  the  situation ;  the}^  well  knew  what 
sort  of  element  would  quench  such  conflagration ; 
but  the  part}'  interested  in  having  the  tree  of 
industr}^  shaken,  in  order  that  tliey  might  gather  in 
the  harvest  of  depreciated  wealth,  prevailed  upon 
President  Grant,  and  he  refused  to  part  with  those 
bundles  of  paper.    Thousands  lost  all  they  had. 


Sf  range. 


23 


but  the  greenback  was  lield  safe.  It  was  after- 
wards destroyed  to  ])revent  it  intei'feriiig  with  the 
profits  reaped  by  bank  notes. 

Yes,  the  sliortcomings  of  legal  tender  money 
alone  is  the  cause  of  all  financial  calamities  with- 
out one  single  exception. 


NEEDLE'S  EYE  OF  LEGAL  TENDER. 


AN  ALLEGORY. 

In  the  progress  of  human  events,  the  Godess  of 
Liberty,  whom  despotism  had  forced  to  take  refuge 
amidst  tlu^  bleak  mountains  and  narrow  crags  of 
Switzerland,  took  flight  across  the  ocean  to  Col- 
umbia, a  new  land,  which  God,  in  his  goodness, 
had  reserved  for  her  development.  Here  she  was, 
in  due  time,  to  proclaim  to  the  world,  in  thunder 
tones,  that  life,  liberty  and  the  enjoyment  of 
happiness  are  inalienable  gifts  of  the  Creator, 
and  that  the  rights  of  governments  should  be 
derived  from  the  governed.  ^  The  oppressed  of  all 
nations  would  hear  her  voice  and  flock  under  the 
iegis  of  her  standard.  Then  tlie  cheerful  shout  of 
the  delivered,  the  din  of  industry  and  the  song  of 
the  happ3'  would  echo  and  re-echo  over  the  land. 
God  would  bless  these,  his  cliildren,  with  a  thousand 
blessings  and  fill  their  homes  with  abundance  and 
}oy.  Finally  the}^  would  become  a  great  nation 
and  none  would  dare  to  make  them  afraid. 

Thus  the  proph(^t,  the  verification  followed. 

(24) 


25 


Needle's  Et/e  of  Leijul  Tender. 


Pressed  by  poverty  and  perseeiition,  and  filled 
with  briglit  hopes,  family  followed  family  across 
the  ocean,  afar  to  the  setting  of  the  sun,  and  theri^ 
soon  gathered  a  goodly  colony  of  farmers,  nuH'hanics, 
builders,  merchants,  manufacturers,  teachers, 
preachers,  physicians  and  ah  auxiliary  classes. 
Appertaining  as  they  mostly  did  to  the  lowly  of 
the  Old  AVorld  ;  lowly,  we  say,  in  the  possession  of 
this  world's  goods,  but  strong  in  physical,  mental 
and  moral  qualities,  able  and  determined  to  make 
the  most  of  this  life,  if  only  allowed  to  d6  so. 
They  had  brought  w^ith  them  but  few  necessary 
effects,  a  scanty  supply  of  clothes  and  household 
furniture,  a  few  tools  and  implements,  some  do- 
mestic animals  and  *some  farm  and  garden  seed  to 
start  a  neav  world  with,  and  stai't  it  they  did. 
The  distance  from  the  mother  country  ,  the  absence 
of  other  friends,  the  similarity  of  conditions  and 
circumstances,  the  comnum  wants  and  aspirations, 
the  necessity  of  mutual  assistance  united  them  and 
in  the  bonds  of  consanguinity  as  one  brotherhood. 
With  one  '  accord  they  set  to  felling  trees, 
building  houses,  cleai'ing  and  fencing  the  forest, 
breaking  tlie  soil,  planting  orchards,  cultivating 
grains  and  vegetables,  raising  fowls,  flocks, 
herds,  flax,  cotton  and  wool,  spinning  and 
weaving  cloth,  jnaking  clothes  and  thus  providing 
generally  for  man  and  beast. 


26 


The  Serpent. 


THE  SERPENT. 

Among  the  immigrants  tliere  came  over  a 
restless  youth ^  naturally  averse  to  all  manners  of 
useful  work,  but  fond  of  hunting,  of  pranks  and  a 
good  meah  He  lingered  a  few  years  among  the 
settlers,  ever  present  at  pic-nics,  hunting,  dancing 
and  dinner  parties,  ever  absent  at  log-rolling, 
brush-piling,  house  raising,  corn  cutting  and  husk- 
ing parties.  Often  cheating  a  friend  out  of  dog, 
gun  or  horse  ;  a  burden  and  a  nuisance  wherever 
present.  Finally  he  disappeared  Westwardlvj 
unwept  and  unlamented. 

The  colony  grew  apace  in  numbers,  enlarged  its 
area  and  added  constantly  to  its  stock  of  wealth. 
In  a  few  years  the  colonists  had  a  surplus  of  the 
necessaries  of  life  and  were  able  to  devote  time  to 
the  comforts,  conveniencies  and  recreations,  as  w^ell 
as  to  advance  the  cause  of  education.  The  un- 
sightly log-cabins,  school  houses  and  churches  were 
rapidly  being  replaced  by  comfortable,  commodious 
and  elegant  frame,  brick  and  stone  buildings ;  rude 
house  furniture  made  way  for  better  polished  and 
more  convenient  articles ;  family  looms  were  laid 
to  rest,  and  wool,  cotton  and  flax  taken  to  large 
factories,  run  by  water-power,  and  converted  into 
rich  cloth.  The  dense  forest  was  being  transformed 
into  an  earthly  paradise  of  green  pastures,  on  which 


ProsjH'rons. 


27 


were  fioeks  of  bleating  sheep,  lierds  of  lowing  cat- 
tle and  neighing  horses  filling  the  air  with 
domestic  music.  Broad  fields  of  yellow  grain  and 
orchards  loaded  with  luscions  fruits  gladdened  tlj(^ 
heart  of  the  husbandman.  Straight,  graded  and 
graveled  public  roads  from  town  to  town  ;  every- 
where attractive  residences^  barns,  parks,  long  i*ows 
of  shade  trees,  while  their  bins,  graineries,  mills 
and  large  stores  were  filled  to  overflowing  with 
grains  and  merchandise,  domestic  and  foreign. 
Pen  could  not  paint  the  prosperity  and  enjoyments 
of  this  people.  In  proportion  to  population  their 
wealth  exceeded  that  of  any  people  on  earth. 

AS  IT  SHOULD  BE. 

Fortunately  they  knew  nothing  of  what  we 
njoderns  call  legal  tender  money,  nor  had  they 
any  use  for  it.  Their  monetary  s^^stem  was  very 
simple,  inexpensive  and  most  effective.  Politically 
they  had  established  a  general  government  to 
attend  to  the  affairs  of  the  whole  colou}^  and  defend 
them  against  invasion  or  insurrection.  This 
general  government  they  supported  by  a  contribu- 
tion from  each  according  to  his  or  her  means. 
They  had  also  established  local  governments  to 
look  after  such  public  affairs  as  did  not  concern 
other  localities  in  the  colon3^  Tliese  local  author- 
ities they  also  supported  by  a  direct  tax  in  the  samc^ 


28 


^.s  it  Should  be. 


manner  as  the  genei-al  governments.  Both  these 
taxes  were  collected  in  kind  as  follows  :  The 
general  government  had  printed  annuall3%  on  fine 
silk  paper,  a  form  of  receipt  or  voucher,  devided  for 
conveniency,  in  denominations  from  one  average 
day's  labor  (which  was  their  unit  of  value  called 
D)  down  to  half,  one-quarter,  one-tenth  and  one- 
hundredth  part  of  a  day,  and  upwards  two,  five, 
ten,  twenty  and  one-hundred  day's  work  counting 
decimally  both  ways.  The  governor  would  pay 
these  vouchers  to  officers,  contractors  and  for  all 
purchases.  These  vouchers  would  circulate  from 
hand  to  hand  in  exchange  among  the  colonists 
during  the  3^ear.  At  the  end  of  the  fiscal  year  the 
goveruor  would  have  the  year's  issue  of  vouchers 
summed  up,  the  amount  divided  among  the  tax- 
payers in  proportion  to  the  means  of  each  (which 
he  had  previously  ascertained  by  an  assessment), 
and  recall  them  for  cancellation.  The  sole  purpose 
of  this  recall  of  the  vouchers  was  to  ascertain  that 
each  citizen  paid  his  or  her  portion  of  tax.  This 
ended  all  the  financial  operations  of  the  civil  gov- 
ernment. By  such  a  system  the  colonists  were 
enabled  to  pay  their  taxes  with  their  several  pro- 
ducts and  services,  because  they  had  a  chance  of 
selling  to  the  officers,  contractors  and  manufactu- 
rers their  products  before  the  tax  was  due.  They 
also  paid  the  exact  amount  necessary  to  support 


As  it  ShoHid  he. 


29 


tlie  govenunent  and  no  more.  No  other  parties 
were  thus  allowed  to  eome  between  the  governor 
and  tax-payers  and  speculate  on  the  transaction. 
If  the  governor  needed  any  article  from  abroad  h<^ 
could  easily  obtain  it  from  or  through  the  mer- 
chants in  the  colony,  as  they  were  exchanging 
surplus  products  of  the  colony  for  foreign  articles 
of  every  kind.  Nor  can  anything  abroad  be  pur- 
chased in  any  other  way  tliau  by  a  direct  exchange 
of  products. 

The  local  authorities  collected  the  tax  b}^  local 
vouchers  in  the  same  manner  as  was  done  by  the 
general  'government. 

There  was  no  danger  of  either  class  of  warrants 
depreciating,  because,  annuall}^,  every  tax-payer  was 
compelled  to  provide  himself  with  at  least  warrants 
enough  to  settle  his  tax,  and  this  requirement 
absorbed  the  whole  annual  issue. 

Another  'good  feature  of  this  system  was  that 
tax-collectors  did  not  need  to  give  bond.  The 
documents  they  received  were  cancelled  in  the 
presence  of  the  tax-payers  and  thus  rendered  val- 
ueless. 

Under  such  rational  system,  the  governor,  nor 
local  authorities,  were  never  under  the  necessity  of 
borrowing  mr^ney,  goods  or  services.  Barbarous 
nations,  who  have  adopted  an  inverse  monetai'V 
order,  believing  that  money  goes  in  advance  of 


•80 


A,s  it  SJiouht  he. 


industry  and  exchanges,  borrow  money  first,  witli 
which  tlieir  governors  '-pretend  "  to  pay  the  people 
for  what  they  get,  then  demand  the  same  money 
back  in  taxes  with  a  surplus,  wherewith  to  reward 
the  lenders.  Plerein  the  trouble  of  barbarians  in 
mone}^  matters. 

To  enlarge  further  on  the  colonial  monetary 
system,  it  consisted  of  tlie  three  following  circu- 
lating mediums  of  account,  viz  : 

1st.  CoTONiAL  WARRANTS,  indicating  the  amount 
that  bearer  had  contril)uted  to  the  support  of  the 
g(m  e  ral  go  v  e  rum  en  t . 

2d.  Local  warrants,  indicating  the  amount  that 
bearer  had  contributed  to  the  support  of  the 
local  authorities  and  public  improvements. 

8d.  Merchants  certific^ates,  or  money  of  the 
merchants,  indicating  the  amount  that  bearer  had 
on  deposit  in  the  stores  of  the  colony. 

The  merchants  in  the  colou}^  had  come  to  a 
mutual  agreement  to  receive  each  other's  certifi- 
cates, and,  for  conveniency  and  identification,  had 
issued  a  uniform  blank  for  these  certificates.  Thus 
the  merchant's  certificates  were  good  in  all  parts  of 
the  colony.  Commerce  with  otlier  countries  was 
purely  an  interchange  of  commodities. 

The  merchants  had  also  established  cancellation 
offices,  in  our  day  called  clearing  houses,  for  the 
settlement  of  balances  between  several  parties  and 


^l.s  //  HJiotid  he. 


31 


with  foreign  nations.  The  most  important  i)oint, 
probably,  in  this  whole  monetary  S3^stem,  was  tliat 
the  colonists  would  never  bind  themselves  to  pa}' 
balances  due  in  commerce,  or  debts^  to  one  anotluM', 
at  home  or  abroad,  in  an}-  one  special  commodity, 
no  matter  what  the  commodity  may  be,  as  thought- 
less barbarians  do,  lest  such  commodity  should  not 
be  procurable  at  the  times,  or  only  procurable  at 
enormous  sacrifices.  Nothing  entices  a  man  so 
much  to  speculate,  as  when  he  can  get  hold  of  an 
article  which  he  knows  before  hand  tliat 
his  neighbors  are  bound  to  have  at  any  cost.  The 
contracts  of  the  colonists  were  all  solvable  in  so 
many  units  of  value  never  specific.  IN^or  did 
they  ask  foreign  debtors  to  so  bind  themselves,  and 
for  thh  same  reason.  The  only  privilege  between 
creditor  and  debtor,  was  in  favor  of  the  creditor, 
and  consisted  in  giving  him  the  option  to  select  the 
article  he  desired  from  among  his  debtor's  posses- 
sions, at  an  equitable  appraisement.  From  this 
privilege  were  only  excepted  a  few  articles  of  im- 
mediate necessity  to  the  debtor. 

Again  the  colonial  unit  of  value,  of  one  average 
day's  labor,  seemed  to  be  the  best  known  and  most 
stable  frim  among  the  units  used  by  the  various 
people  the  colonists  were  dealing  with.  Everybody 
seemed  to  understand  readil}^  wdiat  an  ai'ticle, 
which  required  one  day  V  work  to  produce  or  make 


32 


N'eedlc^^  Eye  of  Legal  Tender, 


was  worth  ;  while  no  oiu^  could  as  readily  conie 
to  tlie  value  of  a  quantity  of  gold,  silver,  copper, 
wheat,  rye,  barley  or  any  other  commodity,  as  all 
of  these  would  ever  vary  according  to  suppl}^  and 
demand.  And,  as  a  unit  is  a  denominator,  which 
is  to  determine  the  value  of  each  numerator,  if  this 
unit  is  itself  variable  accoi'ding  to  supply  and  de- 
mand, the  whole  fabric  of  values  is  based  on  a 
waiving  point,  opening  a  wide  field  for  speculation 
on  its  variations.  Ever}-  time  the  material  of  the 
unit  01*  the  units  themselves  are  hoarded,  exported 
or  in  any  way  diminished  or  increased  in  quanti 
ties,  the  value  of  all  other  things  fluctuate  accord- 
ingly. This  is  a  very  serious  defect  in  a  unit, 
which  should  be  fixed  as  the  Rock  of  Ages.  As  it 
was,  no  one  could  speculate  u])On  the  unit  of  the 
colony.  An  average  day's  labor  v^as  always  the 
same  quantity  and  procui-ed  always  the  same 
amount  of  a  certain  kind  of  wealth  ;  hence  it  was 
the  most  appropi'iate  to  measure  all  wealth  because 
it  could  not  cliange  the  amount  of  labor  in  any 
part  of  it.  Thus  if  a  colonist  was  called  upon  to 
appraise  a  house,  for  instance,  he  would  tell  with 
exactness  the  amount  of  labor  invested  in  it  by  his 
unit.  True  its  commercial  value  may^  have  been 
affected,  besides,  by  the  law  of  supply  and  demand, 
but  the  presence  or  absence  of  money  would  not 
and  could  not  have  afiected  it.    On  the  contrary. 


R if/lit  3[('asi(rc  of  J'a/uc. 


33 


if  a  piece  of  metal  had  been  used  as  a  unit, 
first  it  would  never  have  given  them  a  statement  of 
tlie  labor  invested  in  the  house,  next,  the  abundance 
or  scarcity  of  the  metal  would  have  had  the  effect 
of  lowering  or  raising  the  value  of  the  houye  in  an 
opposite  direction  to  supply  and  demand.  It  will 
be  seen  that,  in  such  case,  all  would  have  been  un- 
certaint3\  A  last,  but  not  least,  merit  of  the  colonial 
system  of  money  was  its  sufficiency  and  adequacy 
to  the  requirements  of  industr}^  and  commerce, 
without  au}^  redundanc3\  The  colonists  could  not 
have  comprehended  wh}^  a  people  should  be  dis- 
tressed and  stop  work  from  the  lack  of  money,  and, 
the  limiting  by  law  the  material  for  warrants  and 
merchants  certificates,  they  would  have  believed 
suicidal. 

This  monetary  system  w^orked  smoothly  to  the 
full  satisfaction  of  all  classes  for  many  years,  with- 
out a  perceptible  defect,  except  in  one  instance, 
which  was  at  once  corrected  by  law^  The  instance 
was  this :  One  year,  at  tax-paying  time,  a  number 
of  colonists  could  not  find  warrants  enougli  to 
settle  their  tax  with.  Both  the  general  and  local 
warrants  had  become  suddenly  very  scarce  and 
high  priced  in  other  commodities,  on  account  of 
the  urgent  demand  to  pay  taxes.  It  was  soon  dis- 
covered that  wicked  men  had  cornered  them  to 
realize  large  profits.    When  complaint  w^as  made 


34 


Speculation. 


about  the  extravagant  price  demanded,  these  wicked 
men  had  the  boldness  to  assert  that  "  the  warrants 
were  no  higher  than  they  had  ever  been,"  but  that 
the  value  of  all  goods  had  gone  down  They 
had  borrowed  the  sophistry  of  barbarians,  appli- 
cable to  gold  money,  and  tried  it  on  the  colonial 
system.  Here  it  revealed  its  falsehood  at  once. 
All  could  tell  tlie  number  of  days  on  each  warrant's 
face  and  all  knew  also  the  labor  in  each  article 
offered  for  them.  Scarcity  of  warrants  could  not 
have  the  effect  here  that  scarcity  of  gold  had  among 
barbarians.  The  colonists  had  not  been  accustomed 
to  such  infernal  tricks,  and  as  soon  as  they  discov- 
ered this,  their  wrath  rose  higher  than  the  value  of 
the  warrants.  They  remonstrated  with  the  Gov- 
ernor and  local  authorities,  and  had  the  law  so 
modified  as  to  make  merchants  certificates  receiv- 
able for  taxes,  and,  at  the  same  time,  enact  a  law 
that  all  warrants  not  presented  in  payment  for 
taxes  within  two  years  from  \he  date  of  their  issue, 
should  be  null  and  void,"  The  warrant  speculation 
was  thus  stamped  out  at  the  very  beginning,  and 
it  never  made  its  appearance  afterw^ards. 

THE  SERPENT  BACK. 

The  colony  continued  to  prosper  uninterruptedly 
for  many  years,  when  late  one  afternoon  a  ragged, 
fur-clad  hunter  from  the  West  made  his  appearance 


The  Serpenf  Back. 


35 


ill  one  of  its  towns.  He  proved  to  be  the  Adven- 
turer wiio,  years  before,  liad  disappeared  with 
liorse  and  dog.  The  citizens  gathered  about  liini 
to  learn  liis  adventures  and  talk  over  old  tiniew. 
He  narrated  his  maii}^  encounters  with  wikl  beasts 
and  wilder  men  ;  the  many  times  he  had  suftered 
hungei-,  thirst  and  cold  ;  the  sleepless  nights  he 
had  passed  in  trees  and  in  caves  watching  for  ene- 
mies. He  described  the  boundless  prairies,  the 
herds  of  bufrak)es,  deer  and  antelope  grazing  over 
them  ;  he  entertained  them  with  the  deceptive 
mirage,  tlie  mountains  he  had  ascended,  whose  tops 
were  often  hid  in  the  clouds  and  some  capped  with 
snow  the  year  around.  But  when  the  inquiry 
turned  to  "  what  he  had  done  for  himself,  wliat  he 
had  gathered  during  his  long  absence  to  support 
and  shelter  him  in  his  old  age,"  he  could  only 
produce  a  skin-purse  full  of  yellow  sand,  wdiich, 
he  claimed  to  be  as  valuable  property  as  the  ciccu- 
mulations  of  any  of  the  colonists.  These  could 
not  comprehend  his  meaning.  They  looked  at  him 
doubtingly ;  they  examin(}d  the  sand  carefully ; 
then  looked  at  him  again  ;  but  he  reiterated  his 
assertion,  adding  that  in  a  country  south  of  the 
mountains,  he  could  purchase  a  farm  equal  to  the 
best  in  the  colony  with  one  half  the  contents  of 
his  treasure.  The  colonists  w^ere  amazed,  but  they 
could  not  believe  his  assertion.    A  farmer  observed 


Value  of  Gold. 


that  lie  would  not  })art  with  one  acre  ol  his  land 
for  ten  times  the  sand  in  his  bag.  What  could 
he  do  with  the  stuff,"  he  querried.  How  could  he 
raise  food  for  and  clothe  his  family  with  it  I  A 
blacksmith  also  examined  the  sand,  and,  ''upon 
his  life,"  he  emphasized,  '*  it  is  too  soft  for  any  pur- 
pose," he  said.  As  for  giving  a  farm  or  a  house  for 
it,  they  all  considered  it  a  huge  joke.  The  hunter 
had  always  been  inclined  to  jest,  when  young,  and 
the  habit  had  followed  him  to  old  age,  they  said. 
Farmers,  blacksmiths,  merchants,  mechanics  and 
all  conceded  that  the  hunter's  sand  was  a  curiosity 
to  behold,  but  good  for  nothing  else. 

DISASTROUS  EVENT. 

While  yet  listening  to  and  reasoning  with  the 
hunter,  the  Governor  of  the  colony  made  his  ap- 
pearance and  seemed  to  enjoy  the  stories  of  the 
Adventurer.  He  had  been  in  the  habit  of  visiting 
all  parts  of  the  colony  to  familiarize  himself  with 
the  wants  or  dangers  of  the  people.  This  was  ap- 
parently his  object  now.  He  questioned  the 
Adventurer  as  to  the  country  he  had  traveled  . 
through  ;  tlie  different  tribes  of  savages  who 
roamed  over  it,  their  character,  habits,  manner  of 
living;  their  weapons,  etc.  He  questioned  him 
about  the  roads,  the  river,  the  people  across  the 
mountains,  and  dwelt  especially  upon  the  country 


The  Serpent  Baek. 


south  of  tlie  mountains,  whero  tlie  Adventui'er  had 
said  that  his  sand  was  so  higlily  prized.  Ho  then 
examined  the  sand  and  pronounced  it,  as  the  cok)- 
nisls  had  dont^,  worthless  for  any  purpose  of  life; 
hut  a  curiosity  to  look  at,  and  lie  reprimand(^d 
the  Adventurer  in  these  words:  "As  you  must 
acknowledge,  friend,  you  have  wasted  the  most 
valuable  part  of  your  life  in  vain.  The  world  will 
not  be  better  for  your  having  lived  in  it.  What 
would  be  the  condition  of  this  colony  had  a  major- 
ity of  the  people 'done  as  you  did?  Here  you  are, 
approaching  the  age  of  inability  to  do  any  manner 
of  work,  and  no  provision  have  you  made  to  meet 
it.  What  have  you  done  for  others  that  they 
should  feed,  clothe,  shelter  and  care  for  you  in  old 
age?  The  stuff  you  have  gathered  at  the  moun- 
tains, which  you  prize  so  highly  and  hold  to  so 
teneciously,  has  no  visible  utility  for  man  or  beast, 
and,  if  barbarians,  south  of  the  mountain,  were, 
as  you  say,  willing  to  give  valuable  and  useful 
property  for  it,  you,  yourself,  know  that  it  was 
merel}^  the  effect  of  mental  delusion  and  supersti- 
tion on  their  parts.  On  this  strain  did  the  Governor 
continue  for  a  time  ;  then  beckoning  to  the  Adven- 
turer to  follow  him,  he  lead  him  out  of  the  hearing 
of  the  colonists,  under  the  shade  of  a  clump  of 
trees,  where,  assuming  a  pleasant  continuance  and 
subdued  tone  (as  the  Adventurer  himself  narratcMl 


88 


Tlie  Serpent  Bael'. 


ill  after  years),  '*  friend,"  said  the  Governor,  "  I 
iiave  resolved  to  establish  a  new  MONpyrARY  system, 
over  my  colony,  in  which  system  your  grains  of 
gold  will  come  into  play.  In  fact,  the  project  that 
I  have  in  contemplation,  will  virtually  make  you 
lord  and  master  of  the  whole  colony,  as  time  will 
sliow,"  but,'*  he  added  with  a  wink,  *•  we  must  be 
partners  in  its  benefits."  And  what  is  the  new 
numetary  system?"  querried  the  Adventurer,  elated 

Keep  cool  and  listen,"  replied  the  Governor,  then 
he  continued.  Having  left  in  the  early  days  of 
the  coh)ny,  you  are  not  expected  to  be  acquainted 
with  the  system  established  tliei*ein  since  your  de- 
paj-ture.  I  the  ruiei ,  have  been  in  the  habit  of  drawing 
ciiecks  on  •'paper,"  upon  the  colonists  for  what- 
ever was  necessary  to  support  the  government.  I 
have  now^  decided  to  draw  these  same  checks  on 
GOLD.  To  this  effect,  I  sliall  liave  built  a  suitable 
factoi-y,  where  you  can  bring  your  sand  and  have 
it  smelted  and  worked  up  into  convenient  pieces 
and  stamped  into  checks.*'  "  But  whose  checks 
will  they  be?"  asked  the  Adventurer,  somewhat 
afraid  that  the  proposed  arrangement  might  mean 
confiscation  of  his  gold.  The  checks  will  all  be 
returned  to  you  free  of  cost,"  replied  the  Governor, 

and  with  them  you  will  be  able  to  draw  taxes 
from  the  people.  **  I  cannot  but  feel  gratelul  foi- 
such  bounty,"  s;iid  the  Adventurer,     but  how  will 


Disastrous  Kvnif. 


39 


you  and  your  officials  live  if  you  give  me  the  cliecks 
to  draw  the  taxes  with?"  As  well  as  bc^fore," 
answennl  the  Governor.  I  will  order  the  colo- 
nists to  bring  the  checks  to  me,  then  hand  them  to 
my  officers,  soldiers,  contractors  and  servants  to 
purchase  commodities  and  services  from  the  colo- 
nists, as  under  the  present  system  of  paper  checks." 

I  see,"  said  the  Adventurer,  by  the  new  system 
you  compel  the  colonists  to  pay  the  tax  to  me  first, 
in  order  to  obtain  the  checks,  then  to  you  to  get 
them  back,  making  it,  of  course  double."  The 
Governor  acknowledged  that  such  would  be  the 
case,  and  that  the  Adventurer  would  have  it  in  his 
power  to  demand  as  high  a  tax  as  he  choosed  by 
simply  raising  the  value  of  his  gold  checks.  But 
what  will  the  colonists  say  to  such  a  "  monetary 
system?"  asked  again  the  Adventurer.  It  is  not 
for  my  colonists  to  object  to  any  law  I  pass,"  re 
plied  the  Governor  with  positivity.  They  are 
my  subjects  and  it  is  their  duty  to  obey. 

The  sand  was  taken  to  the  Governor's  mint, 
made  up  into  coins  and  the  coins  returned  to  the 
Adventurer.    Then  followed  the  within 

PROCLAMATION. 

T^^  our  beloved  subjects,  greeting  : 
In  virtue  of  the  power  in  us  vested,  we  hereby 
do  proclaim  and  command  that  henceforth  the 


40 


Dlm.'<tro  uti  ProcJa  mat  ion . 


Adventurer'8  sand,  as  coined  by  us,  sliall  be  tlie  only 
LEGAL  TEN^DER  article  in  payment  of  taxes,  debts 
lines,  penalties,  etc.,  and  no  other  mone}^  shall  cir- 
culate in  the  exchange  of  commodities  and  services 
in  tli^  colony. 

Let  all  our  subjects  heed  and  obey  on  penalty  of 
confiscation  of  their  property  and  imprisonment. 

Given  under  our  liand  and  seal. 

The  Governor. 

This  proclamation,  short  and  terse,  cast  the  whole 
of  that  prosperous  and  hapf)y  people  into  conster- 
nation and  gloom.  What  a  predicament !  Every 
one  felt  that  he  was  at  the  mercy  of  the  Adventu- 
rer, and  knew  that  he  was  not  a  man  of  mercy. 
Meetings  were  at  once  convened  in  all  parts  of  the 
colon}^  to  protest,  remonstrate,  petition  or  devise 
means  of  averting  or  overcoming  the  dire  calamity 
hanging  over  them.  One  of  the  petitions,  which 
may  be  taken  as  a  sample  of  all  otliers,  ran  thus  : 

To  His  Excellency,  the  Governor  : 

We,  your  humbh^  subjects,  are  struck  with  disma}-^ 
at  Your  Excellency's  last  proclamation.  We  are  at 
a  loss  what  to  do.  No  gold  has  ever  been  found  in 
the  colony.  It  is  not  a  general  product  of  tlie 
^-arth.  and  luMice  unreliable  for  any  purpose  requir- 
ing certainty,  as  is  the  case  in  a  tax  to  support  a 
government.  The  Adventurer  himself  states  that 
it  is  only  found  in  rare  spots  of  the  mountains.  If 


41 


such  (I  spot  was  ever  discovered  in  the  c()k>iiy,  it 
would  only  benefit  the  finder.  Tiie  rest  of  us 
would  bo  at  his  mei'cy.  We  all  feel  that  this,  youi* 
decree,  puts  us  under  the  foot  of  the  Adv(^nturer. 
JA^t  your  ExceHency  have  mercy  upon  his  ])e()ple, 
who  have  ever  been  devoted  and  faithful  to  hini. 
Under  the  present  wise  and  equitable  monetary 
system,  the  sut)port  of  the  government  is  scarcely 
felt,  as  we  are  enabled  to  supply  all  its  needs  di- 
I'ectly  with  our  own  several  products  to  the  officials 
and  contractors,  who  need  them,  and  we  are  thus 
provided,  b^^fore  liand,  with  the  checks  to  settle  the 
tax.  Tlie  proposed  system  compels  us  to  produce 
the  tax-checks  before  w^e  have  them,  and  forces  us 
to  olfer  our  goods  to  the  Adventurer,  who  needs 
scarcely  any,  so  that,  if  he  should  purchase  these 
goods,  it  would  be  only  at  reduced  prices  and  for  tlu^ 
purpose  of  speculating  on  you  and  your  ofiicials. 
Thus  we  are  first  placed  at  the  Adventurer's  mercy 
for  the  checks  to  pay  the  tax,  then  you  and  your 
servants  would  be  at  his  mercy  to  obtain  the  goods. 
What  a  hai'vest  for  him  !  AVhat  a  plight  for  us  all  I 
How  will  it  be  possible  to  save  our  property  from 
confiscation  under  such  grave  circumstances  !  And 
as  for  doing  away  with  the  money  of  the  mer- 
chants," it  is  fearful  to  contemplate.  Such  money 
is  equal  in  amount  to  all  the  goods  we  havc^  in  the 
stores.    How  will  we  be  able  to  perform  our  ex~ 


42 


Disastrous  Event. 


changes  ?  Shall  we  part  with  all  said  goods  to 
obtain  goUl,  tJien  double  our  toil  to  produce  others 
to  exchange?  And,  as  population  will  increase  and 
exchanges  with  it,  shall  we,  in  the  future,  be  forced 
to  produce  double  the  amount  of  wealth  needed, 
and  give  away  one  lialf  of  it  to  get  money,  where- 
with to  exchange  the  remaining  half  among 
ourselves?  Alas  for  us  and  our  families.  Ruin 
stares  us  in  the  face.  Again  we  earnest!}^  implore 
Your  Excellency  to  have  pity  on  his  subjects  and 
repeal  said  proclamation. 

Remonstrances  nor  petitions  had  any  effect. 

Finding  the  Governor  inexorable,  the  colonists 
pressed  in  crowds  to  the  Adventurer  to  purchase  of 
him  the  needed  coins,  lest,  if  too  late,  the  bag  may 
be  exhausted  and  the  toil  of  years,  the  accumula- 
tions of  a  life-time,  the  most  sacred  spot  on  earth, 
a  home,  may  be  lost  in  one  hour. 

They  found  him  stiif  and  haughty.  He  was  well 
aware  of  his  new  position  and  prepared  to  use  the 
advantages  he  held  over  the  colonists. 

He  had  no  use  for  their  products,"  he  said,  and 
he  refused  to  sell  his  coins,  but  would  accommodate 
them  with  loans  sufficient  to  pay  their  tax,  on 
condition  that  they  should  return  the  loan  before 
tax-paying  time  the  following  year,  with  an  addi- 
itional  sum  of  six  per  cent  interest,  and  secure  the 
payment  of  both  principal  and  interest  hy  a  mort- 


Disasirous  Event. 


gage  upon  their  liomes.  But,"  expostulated  the 
people  in  tlieir  consteruatiou,  ansuming  that  we 
obtain  all  the  coins  from  the  Govei-nor  through  his 
officers,  where  is  tlie  additional  six  per  cent  interest 
to  come  from?"  This  is  indeed  a  dire  calamity 
that  tlie  Governor  has  placed  upon  us,  and  so  need- 
less." 

These  are  my  terms,"  replied  the  Adventurer. 
You  may  accept  or  reject  them  as  you  please.  We 
live  in  a  free  countr}^,  and  ever}^  one  is  at  ]il)ei'ty^  to 
act  according  to  his  or  her  will.  If  you  do  not 
like  m}^  offer,  go  to  the  mountains,  as  I  have  done, 
and  search  for  gold  there.  You  will  then  see  what 
it  costs  to  obtain  it." 

With  dejected  looks  and  hearts  full  of  sorrow,  these 
h'<\rd  terms  had  to  be  complied  with.  The  gold 
was  borrowed,  the  mortgage  given  and  the  taxes 
paid.  The  Governor  forthwith  handed  the  coins 
to  officers,  servants  and  contractors,  who  spent 
them  with  the  colonists  for  products  and  services. 
Immediately  on  receiving  the  gold  each  colonist 
rushed  to  the  Adventurer  to  cancel  his  contract 
and  release  his  home,  but  the  debt  is  not  due 
yet,"  said  the  Adventurer,  "  and  I  cannot  accept 
payment,  unless  you  pay^  the  interest  as  well  as  the 
principal."  This,  of  course,  the  colonists  could 
not  do.  It  was  an  absolute  impossibility.  So  they 
liad  to  let  the  debt  go  to  the  end  of  the  year,  when 


44 


Down  Hill  to  Ruin. 


they  found  themselves  in  a  worse  predicament. 
Tlie}^  owed  now  all  the  gold  they  had  to  the  Ad- 
venturer, which  they  could  pay,  they  owed  him  the 
interest  which  they  could  not  pay,  and  they  owed 
tiie  matui'ing  year's  tax  in  gold  again,  and  all  of 
these  possibilities  and  impossibilities,  they  were 
expected  to  perform  by  both  the  Governor  and  the 
Adventurer,  under  penalty  of  utter  ruin.  God 
alone  knew  what  the  colonists  were  to  do.  Some 
did  succeed  in  extricating  themselves  from  the 
difficulty,  and  paid  principal  and  interest,  but  the}^ 
')nly  did  so  by  cheating  their  neighbors  out  of  a 
portion  of  their  principal.  These  neighbors  were 
then  unable  to  even  pay  the  borrowed  principal 
and  lost  their  property.  Year  after  year  occurred 
the  same  rotation  of  financial  difficulties  ;  3^ear  after 
year  losses  of  property  and  homes  ;  year  after  year 
discouragement  and  desolation  spread  over  the  once 
happ3^  land. 

Space  and  time  fail  us  to  depict  the  sad  story  of 
this  doomed  colony.  How  the  Adventurer  grad- 
ually revolutionized  the  entire  business  S3^stem  ; 
how  he  hindered  industry,  how  he  got  possession 
one  by  one  of  farms,  stores,  factories,  mines,  etc. 
Matters  continued  to  go  from  bad  to  worse,  poverty 
and  gloom  took  the  place  of  prosperity  and  joy. 
In  a  few  years  the  condition  of  affairs  in  the  col- 
ony was  deplorable  indeed.    The  Adventurer  was 


Gold  Monomania. 


45 


installed  in  a  marble  front  building,  in  the  center  of 
the  town,  and  had  a  palace  foi*  i-c^sidence.  His 
busine^ts  was  dealing  out  gold  loans,  and  receiving 
the  same  with  an  increase.  Of  course  the  gold  had 
not  increased  by  being  loaned,  and  only  a  very  few 
of  tlie  borrowers  were  fortunate  enough  to  pay 
that  increase,  as  we  said,  by  cheating  some  neigli- 
bors  out  ol  a  portion  of  their  gold.  The  other 
borrowers  had  lost  almost  all  they  possessed  and 
had  become  renters  and  wage  workers,  as  they 
w^ere  contemptuously  called,  These  two  classes 
now  composed  two-fifths  of  the  colony. 

GOLD  MONOMANIA. 

In  after  years  the  monetary  evil  in  the  colony 
had  become  much  aggravated  by  a  monomania  into 
which  the  colonists  had  all  fallen.  The  shock 
caused  by  the  Governor's  decree,  which  compelled 
them  to  pa}"  taxes  and  carry  on  exchanges  with 
gold,  and  the  severe  losses  they  had  sustained  in 
consequence  of  it,  had  completely  overturned  their 
understanding  in  regard  to  the  essence  of  gold. 
One  could  no  longer  reason  with  them  on  the 
subject.  Terror  stricken  b}^  the  aspect  of  ruin,  if 
gold  could  not  be  found,  th^}"  had  fallen  into  the 
fetichism  ot  idolizing  that  metal,  not  only  as  a 
saviour  from  ruin,  but  also  as  a  sort  of  living, 
sentient  and  almost  monipotent  being,  the  moving 


Gold  Monomania. 


spii'it  of  iiidustiy  and  coniinerce,  the  author  of  all 
iuiinan  achievements,  and  the  fountain,  whence 
llowed  all  earth I}^  enjoyments.  To  hearken  to 
gold  eulogists  in  the  colon;/,  one  would  almost 
have  been  persuaded  to  believe  that  all  the 
bi(sssiiigs  natural  and  artificial,  which  man  enjoys 
ou  earth,  are  due  to  gold.  The  gifts  of  the  Creator 
himself  and  the  toils  of  man  were  accounted  sec- 
ondary factors  in  those  blessings.  Self  evident 
truths  were  ignored  in  behalf  of  gold.  Very  intel- 
ligent and  learned  colonists  would  dogmatically 
assert  that  it  was  gold,  not  man,  tliat  was  improv- 
ing the  country,  opening  mines,  running  farms  and 
factories,  clearing  forests,  building  homes,  towns 
and  cities,  and  carrying  on  commerce  by  land  and 
on  the  ocean  ;  that  it  was  gold  that  erected  school 
houses  and  colleges  and  educated  the  nation.  It 
was  the  current  saying  that  "  it  required  so  much 
gold  to  raise,  feed,  clothe,  equip  and  maintain  an 
army  or  a  navy  and  support  the  government." 
And  here  we  may  remark  how  one  single  edict 
perverted  the  reasoning  powers  of  a  whole  colon3^ 
Because  the  decree  compelled  the  support  of  the 
government  to  come  by  way"  of  gold,  now  the}^ 
asserted  that  gold  was  doing  the  supporting.  We 
may  truthfully  say  that  the  colonists  had  actually 
come  to  believe  tliat  gold  was  a  sort  of  divinity, 
whose  assigned  duty  it  wa  o  to  care  for  the  earthly 


(U)Ul  Mono  man  id. 


47 


welfare  of  the  luunan  i-aco.  The  living  being',  man, 
appeared  no  longei*  to  lignrci  in  industrial  <levelo])- 
nient,  except  as  an  auxiliai-y,  or  a[)})'endag(^,  of 
gold.  How  inucli  more  could  truth  oi^  })erver*ted 
and  (xod  and  man  be  degraded  below  adi^ad  useless 
metal  !  In  all  their  ])lans,  contemplating  future 
achievements,  no  notice  whatever  was  longer  taken 
of  men,  their  skill,  abilit}^  or  talent.  The}^  calcu- 
lated solely  the  amount  of  gold  it  would  re(juii"e  to 
perform  the  work.  If  the  colonists  liad  had  mill- 
ions of  the  most  skilled  men  and  all  the  materials 
necessary  for  any  enterprise,  no  attention  was  paid 
to  these,  but  question  whether  the  gr«^at  Mogul  was 
present?  If  the  answer  to  that  question  was  neg- 
ative, they  would  consider  men  as  a  worthless  herd, 
and  the  materials  unavailable  things,  and  set 'the 
enterprise  dow^n  as  an  impossibility.  The  infatua- 
tion was  almost  incredible  to  one  who  did  not  live 
among  them.  Some  of  the  attributes  conferred  on 
gold  would  cap  the  climax  of  all  absurdities.  We 
heai'd  learned  men  say  that  gold  was  the  blood 
which  coursed  in  the  veins  of  industry  and  commerce 
and  gave  them  life."  According  to  their  imagina- 
tion, industry  and  commei'ce  were  sort  of  huge 
abstract  monsters  kept  alive  and  moving  according 
to  the  supply  of  gold  in  tlieir  veins.  If  so,''  we 
said,  '*  then  the  man  who  draws  dribs  of  gold  from 
industry  and  commerce,  in  rent  or  interest,  and 


48 


Gold  Mo  no  ma  n  ia . 


stores  it  away,  or  lias  a  watcli  case,  ring  or  other 
oi-iiameiital  toy  made  out  of  it,  or  has  a  picture 
frame  guikl  with  it,  is  a  veritable  demon  in  luiman 
form.  He  may  be  likened  unto  a  man  who  should 
draw  from  the  veins  of  his  lenu  neighbors  drops 
of  blood,  at  intervals,  and  either  lay  it  away  to 
curdle,  make  a  blood  pudding,  or  sprinkle  his  vict- 
uals to  gratif}"  his  beastly  palate."  And,  when  we 
looked  at  the  gaunt,  pale  and  dejected  counte- 
nances of  those  who  were  bled  b}^  interest  and 
rents,  we  almost  concluded  that  facts  verified  the 
comparison. 

It  is  doubtful  wliether  any  ancient  people,  in  the 
darkest  days  of  idolatry  and  supei'stition,  ever  had 
as  strong  a  faith  in  their  most  sacred  idols,  as  the 
c()h)nists  had  in  gold.    Really  the  worship  of  gold 
might  properly  have  been  considered  the  only  uni 
versa!  religion   in  the  colony,  and,  as  long  as  it 
(iontinued,  it  was  folly  to  attempt  to  inculcate  the 
spi'ead  of  any  other,  for  the  good  book  says  : 
Ye  cannot  serve  two  masters," 
Ye  cannot  serve  God  and  Mommon  both." 
As  the  result  of  this  mental  derangement  of  the 
colonists,  in  the  absence  of  gold  to  stimuhite  them, 
industry  and  commerce  would  cease,  progress  stop, 
the    soil     seemed    to    have     lost    its  fertility, 
steam  its  power,  electricity  its  velocity,  light  its 
brightness  and  man  his  physical  strength  and  men- 


Gold  Monomania. 


49 


tal  (3unniiig.  Machinery  would  lay  rusting-  and 
iiieu  and  women  move  about  in  desolation  and 
want.  Does  it  seem  possible  that  one  single  deci'iH' 
would  have  brought  with  it  such  dismal  train  of 
evil  consequences?  In  this  condition,  of  course, 
the  Adventurer  had  the  colonists  completely  under 
his  control.  If  he  desired  anything  done  for  him, 
he  w(mld  arouse  a  few  colonists  by  the  alluring- 
offer  of  a  little  gold,  put  them  to  building  houses, 
for  instance,  then  rent  the  same  to  them  for  a  few 
years  and  get  both  houses  and  gold  back.  The 
benighted  colonists  would  then  thank  him  for 
having  given  them  employment,"  and  fall  back  in 
their  lethargy,  which  they  called  ^'hard  times. 
These  were  times  when  nature  was  as  open  and  as 
inviting  as  ever,  but  gold  w^as  absent.  Consequently 
employment  of  labor,  and  exchange  of  products, 
could  only  extend  as  far  as  there  w^as  gold  to  eni- 
[)lo3^  or  buy.  Whatever  was  done  beyond  the  lump 
of  gold  to  be  thus  '*  invested,"  was  called  over- 
production." The  portion  of  gold  which  the 
Adventurer  invested,  during  the  year,  to  employ 
labor,  was,  learnedly,  called  wages  fund,"  and  it 
was  asserted  that  no  more  men  could  be  employed 
than  this  "  w^age-fund  "  extended.  So  did  they 
maintain  that  no  more  products  should  be  ex- 
changed than  there  was  gold  to  exchange  them 
through.    All  beyond  was  called      overtrading " 


50 


Gold  Monomania. 


and  dangerous  to  prosperity.  And  realh^,  when  we 
looked  at  things  as  they  stood  in  the  cok)n3^,  it  was 
actually  dangerous  to  buy,  make  or  exchange  more 
goods  than  there  was  gold  to  pay  for  them.  If  this 
rule  was  violated,  the  seller  was  liable  to  lose  and 
the  bu^^er  be  ruined.  Dealing  in  cash,  meaning  to 
the  limit  of  gold,  became  the  only  safe  method  of 
business.  But,  of  course,  dealing  in  cash  was  lim- 
ited to  those  who  had  gold  and  the  quantity  the^^ 
possessed.  It  had  no  reference  to  the  wants  and 
desires  of  the  colonists.  Thus  every  movement 
was  measured  b}^  gold,  or  the  supposed  ability  to 
obtain  gold  at  stated  times.  T^o  wonder  that  mill- 
ions worth  of  goods  were  moulding  and  rotting 
unused,  and  millions  of  men,  women  and  children 
were  suffering  from  want  of  them  ;  that  millions 
were  houseless,  foodless  and  almost  clotheless,  and 
yet  these  millions  laid  in  idleness,  lamenting  that 
there  was  no  demand  for  work.  What  else  could 
be  expected  from  crazy  people  ?  When  they  had 
supplied  the  Adventurer  and  his  craft,  with  what 
houses  they  wish  to  use  or  rent,  as  well  as  with  all 
the  comforts  they  desired,  they  fell  back  in  idleness 
and  want.  We  often  asked  them  why  they  did 
not  go  to  work  ?"  ^*  There  is  no  demand  for  work,^' 
was  the  ready  reply.  If  we  pointed  to  the  very 
many  in  need  of  almost  everything,  and  said,  that 
there  appeared  to  be  plenty  of  work  to  be  done 


Gold  31 '>  no m  a  n  ia . 


51 


yet,"  tliey  would  cast  a  stolid,  inquisitive  glance  at 
us,  indicating  plainly  that  their  minds  were  not 
right  on  these  subjects  and  say,  do  you  not  know 
that  these  poor,  foodless,  ragged  and  homeless  peo- 
ple have  no  gold  to  pay  for  work  ?"  We  ventured 
further.  "  Admit  that  these  poor  people  have  no 
gold,  is  that  a  valid  reason  why  they  should  not 
have  food,  clothes  and  a  home  to  shelter  them  ?" 

We  told  3'ou,  that  having  no  gold,  they  cannot 
pay  for  these  comforts,"  they  would  instantly  reply, 
holding  the  same  stolid  gaze  on  us,  as  if  impressed 
that  we  lacked  understanding.  "  Why  do  you  not, 
we  mean  all  of  you  who  are  poor,  but  able  to  work, 
help  one  another,  and  in  this  way  raise  youi*  own 
food,  make  your  own  clothes  and  build  ^^our  own 
houses  ?"  we  added.  At  this  question,  there  seemed 
to  appear  a  glimmer  of  returning  reason  over 
their  countenances,  as  some  fell  into  a  pensive  mode, 
but  it  would  soon  pass  away  and  be  followed  by 
the  same  persistent  hallucination  that  nothing 
could  be  done  without  gold,"  then  turn  from  us  in 
disgust,  as  if  our  questions  were  baring  them.  We 
once  ventured  to  tell  the  Adventurer,  that  it  was  a 
pity,  that  the  colonists  had  fallen  into  such  a  delu- 
sion regarding  gold,  as  there  w^ould  never  be  gold 
enough  to  emplo}^  them.  He  replied  that  "there 
was  plenty  of  gold,  and  anybody  could  get  it,  if  he 
had  anything  to  give  or  pledge  for  it." 


52 


A  Change. 


This  was  cruel  irony  on  the  poor  colonists. 

Despairing  of  ever  witnessing  a  return  of  the 
old  prosperity  in  the  colou}^  under  such  depressing 
conditions,  we  left  the  colonists  to  tlieir  fate. 

A  CHANGE. 

On  our  return  to  the  colony,  after  an  absence  of 
several  years,  we  were  greatl}^  surprised  at  the 
numerous  and  extensive  improvements  which  had 
already  been  accomplished,  and  many  more  in 
process  of  execution.  They  had  actually  built  large 
cities  and  magnificent  palaces  and  parks  within 
those  cities,  had  built  numerous  town^  and  count- 
less houses  all  over  the  country,  and  were  working 
mines,  foundries,  rolling  mills  and  large  factories 
of  all  descriptions.  They  had  built  railroads  and 
telegraph  lines,  and  extended  the  colony,  and  its 
improvements,  in  all  ways,  far  beyond  our  most  san 
guine  expectations  previous  to  the  tyrannical 
decree,  which  had  enslaved  the  colonists  to  the 
Adventurer.  Naturally,  we  were  anxious  to  learn 
how  all  these  improvements  had  been  accom- 
plished ;  how  the  colonists  had  regained  their 
reason  in  regard  to  gold,  and  how  they  had  freed 
themselves  from  the  Adventurer,  and  had  been  ena- 
bled to  reach  such  achievements. 

How  was  all  this  done     we  inquired. 

^'  By  the  industry,  skill  and  energ}^  of  the  people,'^ 


A  Change. 


we  were  answered.  AVe  could  but  believe  it.  What 
else  could  have  performed  such  industrial  wond(M*s? 
Not  certainly  a  dead  metal,  i\o  matter  how  prc^cious 
a  stone  it  ma}^  be  sup|)Osed  to  be,  or  what  the  super- 
stition of  a  people  about  it. 

Just  then  there  happened  to  be  a  large  conference 
of  a  class  of  people  they  called  l)ankers.  AVe  at- 
tended the  conference  both  through  curiosity  ajid 
information.  One  of  these  blinkers  made  a  speech, 
in  which  he  said  Hei-e  ai-e  assembled  the  men  who 
built  our  cities  and  towns,  our  i*ailroads  and  tele- 
graph lines,  and  made  all  our  gigantic  improvements. 
Here  are  the  men  who  carr}^  forward  our  immense 
commerce  overland  and  on  the  ocean  ;  these  are  the 
men  who  opened  and  run  our  mines,  our  factories, 
etc.,''  and  he  went  on  in  this  strain.  AVe  looked 
over  the  crowd  of  well  dressed  men,  and  it  did  not 
appear  to  us  as  if  the}^  were  house  builders,  railroad 
contractors,  timber  cutters,  mine  diggers,  weavers 
or  mechanics.  In  fact,  when  we  succeeded  in  see- 
ing the  chair,  we  sp  ied  the  Adventurer  himself 
presiding  over  the  assembl}^,  and,  if  he  was  to  be 
taken  as  a  fair  sample  af  the  balance,  it  wa^s  evident 
that  none  of  them  was  engaged  in  any  useful  occu- 
pation whatever. 

How  did  these  men  perform  such  great  deeds 
as  ^Jieir  speaker  stated  we  inqnired  of  one.  AVe 
were  promptly  told  that  these  men  did  no  manner 


54 


A  Change. 


of  work  at  all.  But  their  speaker  said  that  they 
were  the  very  men  who  made  all  the  improvements 
ill  the  colon}',  and  the  crowd  applauded  him  as  if 
he  was  telling  the  truth.''  we  added.  Our  inform- 
ant stated  that  the  speaker  meant  that  they  are  the 
men  who  paid  the  workmen  to  make  the  improve- 
ments. How  did  these  bankers  find  gold  enough 
to  employ,  and  pay,  so  many  men?"  we  asked 
further.  The}'  did  not  pay  them  with  gold,"  he 
replied,  they  paid  them  with  bank  notes."  What 
sort  of  a  thing  is  a  bank  note  ?"  we  troubled  him 
again.  He  was  kind  to  explain  to  us  a  bank  note. 
It  appeared  that,  some  years  before,  when  the  col- 
onists, under  the  gold  hallucination,  would  not  sell 
anything  nor  work  unless  paid  for  with  gold,  and 
consequently  everything  was  dragging  because  of 
insufficiency  of  gold  to  do  business,  the  Adventurer 
made  an  invention.  They  say  that  necessity  is 
the  mother  of  inventions."  It  proved  true  in  this 
case.  Finding  that  his  gold  fell  far  short  of  his 
greed  for  wealth  and  power,  even  at  the  enormous 
price  he  was  charging,  and  that  it  had  not  grown 
by  interest,  he  had  duped  the  colonists  to  believe 
that  he  had  vast  amounts  of  gold  in  what  he  called 
his  vault,  (by  this  he  meant  a  sort  of  a  cave,  con- 
taining an  iron  box,  under  his  marble  front  store, 
which  cave  he  kept  locked  to  prevent  fire  i  -om 
burning  the  gold).    Under  this  belief,  he  had  in- 


A  Change. 


(luc^d  the  (iolonists  to  sell  hiiri  goods  and  build  liiin 
houses  aud  railroads,  and  accept,  for  a  whihs  h(5 
said,  little  strips  of  paper,  (bank  notes),  in  pay- 
ment, in  the  place  of  gold,  which,  he  said,  had 
better  be  kept  from  danger  of  thieves  and  fire. 
These  notes,  he  told  them,  would  answer  the  pur- 
pose, would  be  ligliter  to  carr^^,  and  just  as  good  as 
gold,  because  the  bearer  could  always  get  the  gold 
at  the  bank,  if  wanted,  dollar  for  dollar.  To 
strengthen  faith  in  them,  h  ^  had  stamped  on  the 
same  notes,  the  words  ^'  redeemable  in  gold  then, 
to  fully  establish  and  keep  up  the  deception,  he 
did  actual redeem  what  lew  notes  came  to  the 
bank  for  redemption,  with  a  little  gold  he  kept  on 
hand  for  the  purpose  called  reserve.'^ 

The  scheme  gradually  became  fixed  and  worked 
to  the  full  satisfaction  of  the  Adventurer.  The 
workers  and  traders  began  to  pass  these  notes 
among  themselves  and,  when  some  one  seemed  to  be 
in  doubt  as  to  the  redeemability  of  the  notes,  he 
was  induced  to  step  in  the  bank  and  would  be  sat- 
isfied. Finally  the  testimony  of  some  strengthened 
the  faith  of  all,  and  very  few  notes  would  come 
to  the  bank  for  redemption. 

These  ''redeemable  notes,''  were  afterwards  called, 
by  eminent  writers,  who  are  always  intent  in  giving 
names  to  tilings,  -^representatives"  of  gold,  and 
proved  a  greater  bonanza  to  the  Adventurer  than 


56 


A  Change 


his  bag  of  sand.  They  saved  him  the  time  and 
I'isk  of  going  to  tht  mountains,  cost  him  no  labor, 
there  was  no  end  to  their  volume,  and,  by  calling 
them  representatives  "  of  gold,  enabled  him  to 
purchase  as  many  goods,  hire  as  much  labor,  and 
charge  as  much  interest,  as  if  they  had  been  true 
gold.  Fruitful  invention  !  We  made  bold  once  to 
ask  the  Adventurer  how  his  conscience  could 
permit  him  to  appropriate  unto  himself  the  goods, 
the  toil  and  the  homes  of  poor  colonists  for  such 
trifling  thing  as  a  mere  strip  of  paper.  He  replied, 
with  the  utmost  indifference,  that  those  who  got 
his  strips  of  paper,  could  buy  as  many  goods,  hire 
as  much  labor  and  get  other  homes.  Yes,''  we 
said,  but  that  is  the  business  of  the  colonists  how 
the}^  exchange  goods  and  services  with  one  another. 
What  have  you  to  do  with  such  exchange?"  we 
asked.  You  have  neither  goods  nor  work  to  ex- 
change with  them."  He  declined  further  argument 
on  the  subject  and  hinted  that  we  were  a  "  commu- 
nist," in  order  to  alienate  the  colonists  from  us. 
You  could  see  that  he  feared  lest  they  might  dis- 
cover the  part  he  played  in  the  game.  The 
colonists  made  everything,  even  the  paper  that  his 
notes  were  printed  on,  then  gave  him  millions 
worth  of  goods  or  paid  him  interest  for  the  use  of 
them.  Had  they  studied  the  trick,  they  could  have 
nuvde  the  notes  in  partnership  and  use  tliem  free  of 


Redvemahle  Bank  iXofcs. 


cost,  as  their  colonial  ancestors  had  done.  As  for 
the  "  redeemable  "  part  of  the  notes,  it  was  but  a 
liumlnig  and  a  snare,  as  the  fntnre  proved.  Yet, 
we  must  admit  that,  bad  as  it  was,  the  bank  not(» 
invention  proved  beneficial  to  the  colonists  also. 
They  would  have  starved,  if  they  had  continued  in 
their  stubborness  to  work  and  ti*ade  only  as  far  as 
they  had  gold  to  do  it  with. 

With  the  bank  notes,"  if  the  Adventurer  re- 
ceived the  lion's  share  of  the  goods  and  improve- 
ments, the  colonists  could,  at  least,  live,  weai- 
coarse  clothes  and  be  sheltered  in  a  rented  house. 

So  bank  notes  "  had  become  one  of  the  institu- 
tions of  the  colony.  In  a  book,  printed  at  that 
time,  we  read  a  paragraph  boasting  of  the  great  in- 
crease  of  wealth  and  population  in  the  colon3\  The 
writer  attributed  the  increase  of  wealth  to  the  in- 
vention of  bank  notes,  and  the  increase  of  population 
to  the  discovery  of  vaccination.  The  one,  he  wrote, 
kept  the  colonists  at  work,  the  other  prevented  their 
children  from  dying  of  small -pox. 

The  Adventurer  issued  millions  and  millions  of 
these  redeemable  "  bank  notes,  although  he  did 
not  have  gold  enough  in  his  vault  to  redeem  one  in 
ten,  and  he  became  a  millionaire.  He  had  to  resort 
to  all  manner  of  tricks,  however,  to  prevent  the 
colonists  from  bringing  the  notes  to  the  bank  for 
redemption   and  thus  discover  the    fraud.  The 


58 


Bedcemahle  Bank  Xotes. 


main  one  of  these  tricks  was  this  :  B}'  permission  of 
the  Governor,  he  had  located  a  bank  in  almost 
every  town  in  the  colon^^,  and  each  of  these  banks 
issued  redeemable  "  notes.  Now  one  of  the  craft 
would  start  from  his  town,  at  one  end  of  the  colony, 
with  a  carpet-bag  full  of  his  notes,  carry  them  to 
the  other  end,  and  exchange  them  for  the  noteii  of 
another  bank,  which  he  carried  home  with  him,  to 
be  loaned  and  circulated  in  his  neighborhood.  The 
same  was  done  across  the  colony,  so  that  when  a 
colonist  held  a  bank  note  and  wished  the  gold  for 
it,  he  would  have  to  travel  hundreds  of  miles  to 
get  it.  The  banker  in  his  town  would  not  redeem 
it  because,  he  would  say,  it  was  enough  for  him  to 
redeem  his  own  notes."  Meantime,  while  all  this 
flock,  or  cloud,  of  bank  notes  was  scattered  and 
moving  over  the  country,  the  colonists  worked,  fed 
and  clothed  themselves,  by  exchanging  products  and 
work,  through  the  notes,  and  the  Adventurer  and 
his  craft  absorbed  all  the  surplus  in  purchases,  in- 
terest and  foreclosures. 

One  point  about  these  bank  notes  "  that  we 
must  notice,  is  that,  while  pretending  to  be  ^'  repre- 
sentatives "  of  gold,  and.  as  such,  claiming  the 
same  price  in  goods,  services  and  interest,  they 
lacke  the  very  quality  which  had  made  gold  such 
a  power,  viz :  they  were  not  legal  tender  in  pay- 
ment of  taxes  and  debts.    The  Adventurer  did  not 


llidccinnhlc  Banl'  Nolcx. 


59 


want  tliein  to  be  "  legal  tender.''  Had  lie  so  de- 
sired, the  Governor  was  his  associate,  and  would 
have  readily  granted  him  a  deeiee  to  that  effect. 
But  he  desired  the  notes  only  good  to  go  "into 
debt/"'  and  not  to  come  "  out  of  it."  It  had  always 
been  liis  policy,  ever  since  he  was  made  lord  of 
finances,  to  make  the  road  "  out  of  debt  as  narrow 
and  as  difficult  as  possible.  If  gold  liad  become 
very  abundant  and  easy  to  obtain,  he  would  have 
luid  the  law  changed,  and  have  had  diamond, 
or  some  other  rare  substance,  decreed  legal  tender 
in  the  place  of  it.  The  Adventurer  was  determined 
that  the  colonists  should  be  forced  to  buy  his  gold, 
at  whatever  price  he  might  fix  on  it,  before  tliey 
were  able  to  come  out  of  debt.  He  well  knew  that, 
if  debts  were  all  paid,  lie  would  lose  his  greatest 
harvest  of  wealth,  all  his  revenues. 

At  times  some  thinker  among  the  colonists  would 
catch  an  idea  from  this  hank  note  scheme,  see- 
ing how  they  answei-ed  all  the  purposes  of  gold  in 
employing  labor  and  exchanging  products,  and 
would  suggest  that  the  workingmen  and  merchants 
issue  the  notes  themselves,  and  in  this  manner  cut 
loose  from,  and  stop  paying  tribute  to  that  fifth 
wheel  to  the  industrial  w^agon.  the  Adventurer, 
and  thus  hold  the  property  which  they  were  losing 
by  receiving  and  borrowing  the  notes  from  him. 
But  such  thinkers  would  soon  be  silenced  by  the 


()0 


Redeemable  Bank  Notes. 


unanswerable  "  argument,  generally  originating 
in  the  Adventurer  himself,  that  the  workingmen 
and  merchants  had  no  gold  to  redeem  the  notes 
with.''  Meantime  he  was  secretly  chuckling  to 
himself  over  the  stupidity  of  the  colonists  ;  publicly 
he  made  his  appearance  richly  attired,  with  a  pleas- 
ant, yet  supercilious,  countenance  and  a  stiffness  of 
person  which  was  interpreted    well  heeled." 

This  was  his  policy  to  better  impose  upon  the 
credulity  of  the  colonists  as  to  his  ability  to  re- 
deem "  the  notes.  He  was  now  solid  ;  yet  the  fear 
that  the  workers  and  merchants  ma.y,  some  day,  see 
through  the  note  imposition,  haunted  his  mind 
constantly.  Finally  he  hit  upon  a  scheme  to  pre- 
vent it.  He  had  his  associate,  the  Governor,  to 
issue  another  decree,  ostensibly  to  protect  the  colo- 
nists againt  the  Adventurer,  but  in  reality  to  give 
him  the  monopoly  of  issuing  bank  notes.  This 
second  monetary  decree  ran  thus  : 

Whereas,  It  is  absolutel}^  necessary  that  our  be- 
loved subjects  be  '^protected  "  in  the  redeemability 
of  circulating  notes  ;  and 

Whereas,  The  Adventurer  and  his  craft  are  the 
only  persons  who  possess  gold  to  redeem  said  notes 
with 

Therefore  be  it  decreed,  that  no  one  in  the  colony, 
who  is  not  a  banker,  shall  issue  notes  to  circulate  as 
money  under  severe  fine  and  corporeal  punishment. 


Panics. 


()1 


Given  under  our  liaud  and  seal,  tliis  year  of  the 
second  persecution,  etc. 

This  decree  vested  the  monopoly  of  the  note  bus- 
iness, which  had  now  become  immense,  in  the 
Adventurer  and  his  lucky  craft. 


PERIOD  OF  PANICS. 


Having-  secured  the  monopoly  of  ^'  redeemable 
bank  notes,"  the  Adventurer  and  his  craft  (who  had 
become  somewhat  numerous),  set  earnestly  to  is- 
suing these  notes,  buying  property,  employing  labor 
and  loaning  them  to  enterprising  men  at  interest. 
Soon  the}^  had  $46  millions  out,  for  which  they  held 
good,  substantial  wealth,  or  well  secured  personal 
notes  of  the  colonists  bearing  interest.  The  Ad- 
venturers* notes,  in  the  hands  of  the  colonists,  were 
not  secured  at  all,  and  bore  no  interest.  Strange  to 
say,  the  Governor  himself  borrowed  these  bank 
notes  and  placed  the  colonists  under  bond  to  guar- 
anty their  return  with  interest.  At  first  the 
Governor  borrowed  six  millions,  then  $20  millions, 
and  continued  to  bori-ow  until  he  had  borrowed  $48 
millions.  In  tht  meantime  the  colonists  had  bor- 
row^ed  $100  millions  in  all.  In  a  short  time  a  great 
part  of  this  $100  millions  had  already  been  paid 
back  in  interest  and  the  place  of  every  dollar,  that 
had  been  paid  back,  had  to  be  filled  with  a  gold 
dollar,  when  the  note  became  due.  jSTow  the  Gov- 
ernor ordered  the  colonists  to  bring  in  $12  millions 

(02) 


Panics. 


notes,  which  lie  had  j)ronuse(l  to  pay  to  tlie  Adven 
turer.  If  the  cok)iiists  had  (M)ine  togethei*,  with  all 
the  notes  they  held,  they  conld  not  liave  paid  lialt 
the  debt  owino-  to  the  Adventurer,  yet  ev(M'y  pay- 
ment of  interest,  or  tax  foi*  what  the  Governor  bor 
I'owed,  madii  matters  worse.  This  gloomy  state  of 
affairs  was  aggravated  by  all  the  debts  the  colonists 
owed  to  one  another,  which  were  all  payable  in 
gold,  if  the  creditor  demanded  it.  Tliere  came 
a  slight  fear  that  there  might  not  l)e  gold  enough 
in  the  bank  to  meet  the  possible  demand.  It 
made  many  holders  of  the  bank  notes  rush  to  the 
bank  for  redemption,  and  the  Adventurers,  not 
having  one  dollar  in  gold  for  twenty  of  outstand 
ing  notes,  closed  the  bank  doors,  and  the  colony 
was  thrown  in,  what  i^^  called,  a  financial  panic. 
Then  the  redeemable  "  bank  notes  were  selling 
among  the  colonists  at  20  to  50  per  cent  discount. 

Did  the  Governor  do  a  thing  to  protect  the  peo- 
ple ?  Did  he  make  the  Adventurers  redeem  the 
notes  ?  Or,  if  they  did  not  redeem  the  notes,  did 
he  make  them  give  back  to  the  people,  the  property 
they  had  obtained  for  the  notes?  No,  the  Gov- 
ernor did  neither,  but  let  the  people  suffer  all  the 
losses,  and  the  Adventurers  reap  the  benefits  of  the 
panic.    It  proved  a  great  harvest  to  them. 

A  period  of  depression  followed.  The  Adventurer 
again  issued  notes.    They  knew  that  tlie  colonists 


64 


Panics. 


had  "  to  take  them  or  fare  worse.  Gokl  was  out 
of  the  question.  Again  the  colonists  pushed  work 
and  improvements  and  took  bank  notes  in  pay- 
ment. Th^  Adventurers  took  the  improvements  for 
the  notes,  which  cost  them  nothing  but  the  paper  and 
printing.  The  colonists  always  giving  real  wealth 
for  mere  paper,  yet  paying  interest  to  the  Adven- 
turer besides.  Such  infatuation  is  beyond  the 
bounds  of  reason  and  common  sense,  yet  no  argu- 
ment of  ours  could  draw  the  colonists  attention  to 
it. 

The  Governor,  for  a  time,  had  been  in  the  habit 
of  receiving  bank  notes  for  taxes.  Now  he  singled 
out  some  favorite  Adventurers  and  ordered  his  offi- 
cials to  receive  only  the  notes  of  tliese,  or  gold,  for 
taxes.  This  order  made  the  colonists  rush  to  the 
favorite  Adventurers  to  borrow  notes  to  pa}-  taxes 
with,  and  such  was  the  pressure  to  obtain  them, 
says  another  witness,  that  these  favored  Adven- 
turers could  not  sign  them  fast  enough." 

When  the  Governor  had  collected  a  large  amount 
of  these  notes,  he  became  afraid  himself  that  these 
favorite  banks  would  not  be  able  to  redeem  them, 
should  he  need  the  gold.  So  he  appointed  some  of 
his  friends  to  go  and  examine  the  gold  in  the  vaults, 
but,  Lord  bless  him,  these  friends  "  would  not  "  go. 
They  were  in  partnership  with  the  Adventurers. 
One  John  Randolph  told  the  Governor  that  ^'  he 


Panics. 


05 


iiiioht  as  well  Heiul  men  to  pivaeli  Christiaiiity  in 
Turkey,  as  to  si^nd  tliein  to  investigate  the  alfiiiis 
of  tlie  Adventurers/'  riiey  were  the  h)i'ds  of  tlu* 
c()h)ny,  not  the  Governor.  Tluui  the  fear  of  the 
Governor  increased,  and  witli  it  that  of  the  colo- 
nists. Another  rusli  was  made  to  have  tlie  not(^s 
redeemed,  another  suspension  of  the  banks  and 
anotlier  financial  panic  followed.  The  Adventu- 
rers* were  now  as  rich  as  Croesus.  They  lived  in 
magnificent  palaces  and  reveled  in  luxuries.  Rile's 
Register,  published  at  that  time,  says  that  *'  the 
prodigality  and  dissipation  of  some  Adventurei's 
were  beyond  belief.  AVe  heard,''  says  Rile,  oi 
the  furniture  of  one  single  parlor  costing  $40,000. 
In  all  great  cities  it  was  dash,  dash,  dash.  Miser- 
able miners  and  speculators  converted  into  knaves 
of  rank,  through  that  abominable  system  of  re- 
deemable (?)  bank  notes."  But  how  with  the 
colonists  ?  Read  the  same  paper,  20,000  [)ers()ns 
were  seeking  employment  in  one  city  alone,  and  a 
similar  condition  all  over  the  colony.  Wheat  was 
20  cents  a  bushel.  A  man  stopped  his  papei*,  becaus(\ 
before  the  panic,  one  barrel  of  flour  would  ]>ay  tlie 
subsci-iption  one  year,  now  it  took  more  than  thre(\ 
Evervthing  else  low  in  proportion.  Schools  closed 
and  school  l)ooks  were  a  drug.  Wages  very  low  at 
half  time.  The  pa])ers  Avere  full  of  advei'tisements 
of  sheriff's  sales,  and  contained  numerous  account  s 


66 


Panics. 


of  riots,  incendiary  fires,  frauds  and  robberies. 
Tlie  distress  in  the  colon}^  was  intense." 

This  panic  histed  four  years.  During  that  time 
the  Adventurers  bought  some  of  their  own  notes  at 
S2.10  for  $1.00  in  gokl. 

Examples  like  the  above,  it  seems,  would  have 
put  an  end  to  the  redeemable  bank  note  "  fraud  ; 
but  on  the  contrary,  such  had  been  the  sufferings  of 
the  people  in  those  four  yeai-s,  that  when  the  Ad- 
venturers offered  them  work,  if  they  would  receive 

redeemable  bank  notes  "  in  pa3^ment,  they  accep- 
ted the  offer,  and  went  to  work  again  for, them.  It 
is  indeed  astonishing  to  what  a  degree  of  suffering 
and  subjection  a  monetary  craze  may  carry  a  peo 
pie.    Religious  superstition  is  not  comparable  to  it. 

The  Adventurers  had  their  free  slaves,  as  we  may 
properly  call  them,  building  houses,  running  facto- 
ries, improving  farms,  etc.,  for  them.  This  time, 
however,  business  did  not  continue  very  long. 
The  memory  of  the  last  panic  was  too  fresh  in 
men's  minds.  The  Adventurers  kept  issuing  notes  ; 
but  the  colonists  brought  them  back  as  fast  to  the 
bank  for  redemption,  so  that  they  could  not  put  out 
many,  and  another  panic  soon  followed.  This  one, 
coming  immediately  on  the  heels  of  the  other,  from 
which  most  of  the  people  had  not  yet  recovered, 
threw  the  colony  into  outer  financial  darkness.  No 
one  knew  which  way  to  go  ;  no  one  knew  what  to 


Panics. 


67 


do.  Ruin  was  all  around.  In  spiti'  of  sucli  terri- 
ble lessons,  the  Adventurers  Ix^gan  again  to  issue 
notes,  and  the  starved  colonists  went  to  work  and 
took  them  in  payment.  To  increase  the  evil, 
foreign  Adventurers,  seeing  what  a  harvest  i-e- 
deemable  bank  notes  had  been  tooui*  Adventurei's. 
came  over  to  bank  on  a  few  grains  of  gold,  and  the 
two  together  flooded  the  colony  again  Avith  the 
same. 

Now,"  says  an  historian,  came  the  era  of 
greatest  development  in  the  colon3\"  The  com- 
bined Adventurers  pushed  the  issues  of  '^I'edeemable 
bank  notes  and  the  benighted  colonists  pushed 
the  construction  of  railroads,  set  in  motion  many 
industrial  enterprises,  enlarged  cities  and  towns, 
extended  improvements  westward,  established  an 
immense  commei'ce,  and  the  whole  coh^ny  was 
made  to  echo  and  i*e-echo  with  the  din  of  industry. 
Providence  se  med  to  take  a  hand  in  the  general 
movement  and  blessed  the  colonists  with  abundant 
crops. 

But  alas  !  tlie  colonists,  as  usual,  had  taken  the 
paper  in  payment,  the  Adventurers  had  taken  the 
railroads,  the  houses,  the  factories  and  other  im- 
provements. At  last,  also  as  usual,  the  banks 
proved  to  have  no  gold  to  redeem  even  the  few 
notes  which  had  not  been  bi'ought  back  in  interest, 
and  another  territic  panic  was  the  I'esult. 


68 


Panics. 


Eead  a  sketch  of  tliis  panic  by  an  Adventurer 
himself:  In  March  tlie  colonists  lield  meetings 
to  devise  plans  for  relieving  the  distress.  They 
decided  to  send  a  committee  of  fifty  to  the  Gov- 
ernor.   In  their  address  to  the  Governor  they  said  : 

The  value  of  real  estate  has  depreciated  $40 
millions  in  six  months.  We  have  already  had  200 
failures  in  one  city  alone.  The  immense  amount 
of  merchandise  in  oui*  stores  has  fallen  in  price  at 
least  30  per  cent.  Within  a  few  v^eeks  no  less  than 
20,000  able  workingmen,  depending  on  their  dail}^ 
work  for  their  dail}'  bread,  have  been  discharged 
because  there  was  no  money  to  employ  them.  We 
therefore  ask  whether  it  is  not  time  to  interpose 
the  paternal  authority  of  the  Governor  and  bring 
back  gold  in  the  channels  of  trade  (alas  the  delu- 
sion !    How  could  the  Governor  bring  back  gold  ?) 

The  Governor  could  not  be  induced  to  do  any- 
thing whatever  against  his  associates,  the  Adven- 
turers. So  the  colonists  made  a  rush  to  the  banks 
for  the  little  gold  they  had  there  on  deposit.  The 
Adventurers  had  loaned  this  out  and  closed  the 
doors  against  depositors  also.  Thus  note  holders 
and  depositors  were  left  out  of  doors  penniless  to- 
gether. 

Again,  did  the  Governor  protect  the  colonists  in 
the  redeemability  of  the  notes,  as  he  had  pretended 
to  do  in  his  last  decree,  giving  the  Adventurer  the 


Panics. 


iiionopol}^  of  tlie  notes?  ^sTever  in  one  instance^  did 
he  as  much  as  think  of  doing  so  ;  but  in  all  instances 
he  protected  the  banks.  Now  w  riters  in  tlu^  colony 
asserted  that  money  panics  were  due  to  the  ex- 
ti'avagance  "  of  the  people.  They  said  that  it  was 
wrong  and  unsafe  for  a  people  to  stir  upand  undei-- 
take  to  build  railroads,  houses,  factories,  imj)r()V(^ 
farms,  I'aise  large  crops,  etc.,  when  there  was  no 
gold  in  the  country.  What  would  3'ou  wash  them 
to  do?"  we  asked  of  one   of  these  authorities. 

should  a  people  remain  idle  and  starve,  because 
there  is  no  gold?"  Their  answer  was  evasive,  but 
implied  that  a  goldless  people  had  better  go  slowly, 
plod  along  on  the  safe  side,  which  was  the  suffering 
side,  and  await  the  arrival  of  the    pi-ecious  metal." 

"  Did  not  the  people  create  w^ealth  when  tlu^v 
were  at  work  ?"  we  ask(^d  them  further. 

^'  Yes,"  replied  the  authoi'ities,  but  it  was  only 
lictitious  wealth." 

Indeed,"  we  added,  ai*e  not  the  railroads,  the 
houses,  and  factories  they  built,  the  food  they  raised, 
the  machinery,  implements  and  clothes  they  nuide, 

real  wealth  ?"  But  we  talked  to  no  effect.  Those 
great  men  believed  that  nothing  could  be  real 
wealth  which  is  not  paid  for  w^ith  gold. 

Meeting  one  day  a  great  nuin,  Webster,  who  was 
considered  high  authority,  we  asked  his  o})inion  of 
'^redeemable  bank  notes,"    He  said  that     of  all 


70 


Gold  Discoveries 


contrivances  for  cheating  the  laboring  classes, 
paper  mone}^  was  the  worst."  ''It  is  the  best  in- 
vention," he  said,  to  fertilize  the  rich  man's  field 
by  the  sweat  of  the  poor  man's  brow."  In  fact"' 
he  added,  it  is  worse  than  ordinary  tyranny,  op- 
pression and  overtaxation  combined."  Bnt  how 
w^ould  it  be  if  the  laboring  clasvses  shonld  issne 
notes  themselves,  and  thus  hold  the  property  they 
create,  inst  ead  of  handing  that  property  over  to 
some  idle  Adventurer  and  take  his  w^orthless  notes 
for  it?"  we  asked  of  him.  Here  he  fell  into  the 
common  error. 

"  It  cannot  be  done,"  he  answered.  The  Gov- 
ernor's last  decree  foroids  it.  Besides  the  holders 
of  the  notes  must  be  protected  in  their  redeema- 
ability  (?)"  and  the  working  classes  have  no  gold  to 
redeem  them  with. 

Always  the  same  sad  hallucination.  It  had  per- 
vaded the  brain  of  all  in  the  colony,  learned  and 
ignoi-ant,  great  and  small. 

GOLD  DISCOVERIES. 

The  situation  in  the  colony  was  now  such  that 
the  old  prosperity  could  only  be  restored  b}^  one  or 
the  other  of  two  events.  Either  a  miracle,  which 
should  restore  the  minds  of  the  colonists  and  in- 
duce them  to  retui-n  to  the  former  colonial  monetary 
system,  or  the  discovery  and   acquisition    of  a 


(fold  Discorrrics. 


71 


sufficiency  of  gold  to  nicest  all  contingciKri  es 
It  appeared  that  the  lattcir  event  was  at  liand. 

In  Fi'bruarv,  1<SJ:8,  little  .^liss  Marsliall,  found  a 
yellow  pebble  at  Sutton's  mill,  on  the  colonial 
branch  of  the  Sacramento  river,  in  California.  The 
pebble  proved  to  be  gold.  The  news  spread  lik(^ 
wild  fire  both  through  tlu^  colony  and  tlu^  Old 
Country.  It  created  the  greatest  excitement  we 
ever  witnessed.  Had  the  people  been  at  the  vergc^ 
of  starvation,  and  some  propliet  announced  that 
Heaven  was  about  to  pour  down  manna,  it  w^ould 
not  have  brought  greater  joy.  Young  men,  by  the 
thousands,  hurried  to  make  read}^  to  abandon  par- 
ents, friends  and  liome  and  fly  to  the  gold  region  ; 
husbands  and  fathers  felt  bound  to  leave  wife  and 
children,  in  the  hope  of  realizing  gold  enough  to 
lift  them  from  the  pangs  of  poverty  and  want. 
Everybody  was  in  commotion.  To  the  mines!'' 
Are  you  going  to  the  mines?"  "  When  are  you 
going  to  start?"  were  the  uriiversal  cries,  the  con- 
stant questions,  the  general  topics  of  conversation. 
Such  delirium  of  gladness,  such  glow  on  counte- 
nances, such  farew^ells,  such  embraces,  such  flow  of 
joyous  tears  never  were  seen  before  in  the  colony. 
Imagine  a  multitude,  who  had  given  up  almost  all 
hope  of  enjoying  the  commonest  of  earthly  com- 
forts, to  see,  on  a  sudden,  a  fortune  flash  before 
their  eyes.    So,  to  the  mines  they  went  until  the 


72 


Gold  Discoveries 


colon 3^  seemed  to  luvve  lost  half  its  male  popula- 
tion. B^^  August,  of  the  same  year,  thousands  and 
thousands  of  persons  were  already  at  work  mining- 
after  gold.  Meantime  discovery  followed  discov- 
ery among  the  mountains,  so  that  the  Adventurers 
at  home  trembled  lest  their  gold  should  become 
valueless,  and  were  already  discussing  among 
themselves  what  other  rare  thing  could  be  made 
legal  tender  in  the  place  of  gold. 

A  short  period  after  the  discovery  of  Miss 
Marshall,  gold  was  also  found  in  abundance  on  the 
other  side  of  the  earth,  Australia,  and  there  also 
poured  men  fi-om  all  parts  of  the  w^orld. 

Thank  (lod,  we  exclaimed,  on  hearing  the  cheer- 
ing news,  salvation  from  financial  troubles  is 
indeed  at  hand.  We  are  entering  an  era  of  gold. 
Since  it  seems  impossible  to  arouse  the  colonists 
from  their  gold  delusion,  they  will  at  least  soon 
have  an  abundance  of  the  stuff  to  keep  all  of  them 
at  work,  and  make  themselves  prosperous. 

We  remained  in  the  colony  in  the  hope  that,  at 
the  return  of  the  miners,  we  would  witness  a  true 
revival  of  business,  in  which  the  colonists  would 
enjoy  all  the  benefits,  independently  of  the  Adven- 
turers and  their  "redeemable  bank  notes."  Of 
course  we  well  knew  that,  if  prosperity  ever  re- 
turned, it  would  be  due  entirely  to  their  own  work 
at  home,  and  not  to  the  holes  they  dug  in  California 


(I old  Discorci  icH. 


78 


or  Australia,  nor  to  the  gold  tlicy  extracted  from 
those  holes.  But  there  seemed  to  be  no  othei*  way 
to  arouse  them  from  chronic  iethar<i,T.  (\\ce])t  by 
pandering  to  their  gold  monomania.  K(MU*ema])]e 
bank  notes  "  issued  by  the  Adventurers,  had  proven 
so  great  a  field  of  robber}^,  tliat  they  had  lost  faith 
in  them,  and  only  received  them  when  a(*tual  ne- 
cessity compelled  them  ti)  do  so.  In  fact,  as  we 
quoted,  their  most  trusty  friends,  (who,  alas,  Avere 
equally  affected  by  the  gold  delusion),  advised 
them  to  let  such  notes  severely  alone.  They  had. 
however,  passed  so  many  years  of  oppression,  rob- 
beries, depression  of  spirit  and  suffering,  all  due 
to  that  one  horrible  decree  making  gold  legal  ten- 
der, and  the  consequent  loss  of  mental  balance, 
that  we  would  have  participated  in  the  general  joy. 

Alas  I  we  were  doomed  to  disappointment  again. 
Now  and  then  one  of  the  miners  would  return, 
bringing  with  him  gold  enough  to  keep  him."  as 
he  would  say,  the  remainder  of  his  days,'*  and 
would  at  once  join  the  craft  of  Adventurers. 
The  largest  number  had  either  perished,  or  remain- 
ed at  the  mines,  ashamed  to  come  home  poor. 
These  replied  to  letters  from  friends,  wlio  invited 
them  to  come  home.  What  is  there  for  us  to  do 
at  home?  Business  is  dead.  There  is  no  money 
in  circulation,  and,  if  we  work  at  all,  we  have  to 
take  w^oi-thless  paper  strips  ibr  it,  and  finally  loose 


74 


Gold  Discoveries 


the  whole.-'  So  they  remained  at  the  mines,  catch- 
ing jobs  for  a  living.  A  few  more  managed  to  make 
their  way  home  sad,  dejected  and  poorer  than  they 
had  left.  Before  leaving  for  the  mines,  they  sold 
what  little  effects  they  could  spare,  now  all  was 
gone  and  nothing  remained  but  the  open  arms  and 
welcome  of  friends. 

^' What  became  of  the  gold  which  was  mined?" 
we  inquired  of  these  returning  miners.  It  all 
went  to  pay  expenses,"  they  replied.  "  Everything 
was  so  high  that  but  few  had  any  gold  left."  What 
did  merchants  and  provision  men  do  with  the  gold 
you  paid  them  ?"  w^e  asked  further.  Some  are 
rich  and  loaning  money,"  they  answered,  but  the 
largest  portion  are  poor,  and  many  have  been  sold 
out,  root  and  branch,  by  the  sheriff."  How  can 
this  be  !  who  got  the  gold?  who  sold  them  out?" 
we  querried.  One  of  the  most  intelligent  among 
the  returned  miners  explained  to  us  that  as  soon 
as  the  miners  began  to  arrive  at  the  mines,  mer- 
chants, mostly  from  England,  arrived  also  with 
vessels  loaded  with  provisions,  clothes,  tools,  imple- 
ments, machinery,  powder,  fuse,  etc.,  all  of  which 
we  were  bound  ^to  purchase  at  their  own  prices. 
These  merchants  had  borrowed  mone}^  of  English* 
Adventurers  to  purchase  these  thhigs  and  pay 
freight  on  them,  and,  when  we  complained  of  high 
prices,  they  told  us  that     interest  "  and  freight 


Panics, 


75 


al)S()rl)ed  all  the  profits.   "  Heaven  help  the  i)eo])le 
we  exclaimed  in  astoiiishineiit.    So  Adveiilurers  in 
England  absorbed  all  the  gold  at  last.    AMuit  will 
ever  become  of  the  colonists?    Where  is  any  hope 
left  for  them  ? 

Thns,  at  the  very  time  when  we  expected  the 
colony  to  be  flooded  with  gold  from  the  mines  of 
California  and  Australia,  jnst  wdien  we  expected  to 
see  the  colonists  pa}^  off  the  mortgages  3^et  hanging 
on  their  liomes,  jnst  wlien  we  believed  them  abont 
free  from  the  Adventnrers,  oidy  nine  years  from 
the  discovery  of  little  Miss  Marshall  in  California, 
and  only  three  years  after  the  discovery  of  gold  in 
Anstralia,  snch  was  the  scarcity  of  gold  in  tlie  <'ol- 
ony  that  the  Adventnrers.  with  all  tlie  help  fi  on^ 
the  few  fortunate  miners  who  had  joined  them, 
could  not  redeem  the  few  notes  presented  to  their 
banks,  and  the  colony  found  itself  involved  in  the 
most  terrible  panic  that  had  ever  happened  before. 
Thousands  and  t^ns  of  thousands  lost  all  they  had 
in  the  world  and  were  beggared  for  life. 

Read  a  description  of  this  other  panic  by  one  of 
the  Adventurers.    He  says  : 

Up  to  August  our  commercial  altairs  were  gen- 
(^rally  prospei'ous.  Farmers,  stockgrowers  and 
planttM's  had  been  made  rich  by  high  pi-ices.  (It 
was  work  had  made  them  rich,  not  high  ])i'ices). 
With  the  inunense  productions  of  the  year  at  our 


76 


Panics. 


(loors^  the  most  sagacious  of  Adventurers  saw  no 
indications  of  a  storm  in  the  financial  sky.  On 
the  8th  of  August  the  Adventurers  had  loaned  out 
122  millions  of  redeemable  bank  notes."  Such 
amount  made  them  afraid  that  the  colonists  may 
bring  them  for  redemption,  so  they  stopped  loaning; 
meantime  they  called  in  the  debts.  Debtors  were 
at  once  compelled  to  press  produce  on  the  market 
for  sale.  Produce  fell  in  price.  A  produce  house 
failed.  One  failure  brought  another,  and  on  the 
24th  of  August  a  great  Adventurer  suspended.  It 
struck  the  public  mind  like  a  cannon  shot.  An 
intense  excitement  was  manifested  among  all  the 
Adventurers.  Tlien  failure  followed  failure  and 
tlie  colony  was  characterized  by  intense  excite- 
ment. Bank  notes  in  circulation  stopped  passing. 
At  the  end  of  August,  another  great  Adventurer 
closed  his  bank,  and  went  to  loaning  in  the  street 
at  5  per  cent  per  month.  House  after  house  of 
high  commercial  repute  went  down,  and  many 
banks  were  added  to  the  list  of  failures.  Mean- 
time work  and  commerce  came  to  a  dead  lock  ; 
the  purchase  and  transportation  of  produce  ceased 
almost  entirely. 

From  this  period  nothing  was  wanting  to  aggra- 
vate the  common  distress  fo  •  money.  The  avalanche 
of  failures  swept  down  merchants,  bankers,  (yes, 
but  these  only  suspended,  they  are  not  sold  out  by 


PfUtiCS. 


the  slieriir,)  (^oi'poration inaiuifiiclurinL:,  coiiipa- 
iiies  without  distinction.  Old  liouscs  with  accumu- 
lated capital,  wliicli  had  witlistood  tlie  violence  of 
fo!'ni(4'  panics,  were  prostrated  in  a  day.  In  tlie 
middle  of  October  ail  the  banks  closed.  It  was 
the  climax  of  this  financial  luirricane. 

Such  is  the  outline  of  the  most  extraordinary  , 
violent  and  destructive  financial  panic  evei'  experi- 
enced in  the  colony. 

Another  witness  of  that  panic  calculated  the 
losses  suffered  b}'  the  colonists  at  from  half  billion 
to  one  billion  of  dollars,  besides  the  incidental 
losses  by  the  stoppage  of  business,  when  millions 
of  idle  laboi'ers  lost  millions  of  dollars  daily.  He 
adds  that  such  losses  are  fearful  to  contemplate  in 
figures.  How  much  more  the  reality  of  it  if  it  could  be 
brought,  at  one  glance,  under  the  eye  !  The  grave 
of  many  fortunes,  the  gulf  which  has  swallowed  up 
the  competenc}^  of  thousands  ;  the  liomes,  the  com- 
forts, the  food,  the  raiment  of  millions,  who  toil 
with  their  own  hands  for  their  dail}^  bread.  The 
whole  colon},  suddenly  and  most  unexpectedly, 
plunged  into  indigence  and  grief 

Behold  the  good  the  gold  mines  brought  us  ! 

The  last  writer  quoted  says  that  the  panic 
lasted  one  hundred  days."  It  is  lasting  yet.  Man}^ 
have  never  recovered  from  their  losses.  He  means 
that  it  took  one  hundred  days  for  the  Adventurers 


78 


Panics. 


to  close  the  mortgages  and  gather  in  the  booty  ; 
for,  be  it  remembered,  that  monetary  panics  do  not 
carry  away  or  destro}^  one  single  atom'  of  existing 
wealth.  After  the  panic  all  the  wealth,  which  ex- 
isted before,  is  there  yet,  but  it  has  changed  hands, 
it  has  passed  from  the  hands  of  the  man}^  produ- 
cers, into  the  hands  of  the  few  Adventurers.  Then 
the  victims  are  cluvrged  of  having  brought  about 
the  panic  by  their  ^'extravagance."  Alas  !  It  is 
that  abominable  legal  tender  decree  which  belches 
out  more  destruction  than  the  outpouring  of  a 
volcano. 

Under  the  old  colonial  monetary  system  panics 
were  absolutely  impossible 

After  the  last  panic,  the  most  melancholy  period 
ever  witnessed  by  the  inhabitants,  fell  upon  the 
colony.  There  was  neither  enterprise  nor  spirit 
enough  left  to  bring  it.  The  colonists  were  utterly 
discouraged.  A  dark  pall  seemed  to  have  fallen 
over  the  land.  Gold  was  out  of  the  question.  'No 
help  could  longer  be  expected  from  the  mines.  The 
hard  working  fai'mer,  reduced  to  the  necessity  of 
borrowing  from  the  unfeeling  Adventurers,  at  enor- 
mous rates  of  interest,  was  soon  forced  to  give  up 
his  new  home  and  move  with  his  family  still  further 
in  the  wilderness.  AVage  workers  were  tramping 
the  country  in  poverty  and  gloom.  The  distress 
was  universal.    And  all  of  this,  as  we  said,  at  the 


(xoJd  Jfiiics. 


70 


jxM'iod  of  tlie  greatest  prodiu^tion  of  gold  tliat  liad 
ever  liap|)ened  in  the  woi'ld  hefoi'e  or  after! 

AT  THE  MINES. 

iNIay  it  not  be  interesting  to  tlie  reader  to  learn 
how  affairs  had  gone  at  the  gold  mines,  and  how  it 
happened  that  the  more  gold  was  dug,  the  scarcer 
it  seemed  to  become  in  the  colony,  and  the  harder 
the  money  trouble?  We  give  a  description  of 
one  mine  b}^  friend  Patterson.    He  writes  : 

''The  spot  was  a  deep  ravine  formed  by  the 
Buckland  River,  enclosed  by  steep  mountain  sides, 
which  excluded  ever}^  breath  of  wind.  The  air  in 
the  ravine  was  stagnant,  and  the  scorching  sun 
made  it  intensel}^  hot  during  the  day,  while  at 
night  the  temperature  fell  to  a  piercing  cold,  so 
that  the  miners  in  the  ravine  were,  alternateh  ,  in 
an  oven  and  in  an  ice-house.  Moreover,  as  the 
gold  beds  lay  in  the  channel  of  the  river,  the 
miners  worked  up  to  their  waists  in  water.  To 
this  gold  field  of  surpassing  richness,  liundreds  of 
Adventurers  had  flocked  in  feverish  haste  ;  but  the 
disease  kept  horrid  sentry  over  the  buried  treasure. 
A  peculiar  fever,  of  the  typhoid  character,  was  the 
denizen  of  the  spot ;  besides  which  the  gold  seek- 
ers suffered  severely  from  the  eye-blight,  owing  to 
the  concentrated  blaze  of  the  sunshine  reflecting 
from  the  steep  sides  of  the  ravine,  and  they  were 


80 


Gold  3fme8. 


at  all  tiineri  grievously  tormented  by  clouds  of  flies. 
Bad  diet  and  want  of  vegetables  aggravated  the 
disease  natural  to  the  place  and  to  the  kind  of 
work.  In  the  interesting  accounts  which  reached 
us,  we  read  of  onions  selling  at  $1.50  per  pound  ; 
cabbages  so  precious  that  they  were  cut  up  and 
sold  at  from  60  cents  to  $1.00  per  pound.  Hollo- 
way's  pills  selling  at  25  cents  each  or  $5.00  per  box. 
It  was  a  valley  of  death.  Constitutions,  that  had 
borne  the  hardships  of  other  fields,  broke  down 
here,  and  hundreds  perished,  unattended  and  un- 
known. The  little  levels  between  the  stream  and 
the  base  of  the  mountain  wall,  for  ten  miles  along 
tlie  vallc}^,  are  so  thickly  studded  with  graves  that 
the  river  appears  to  run  through  a  church  3^ard. 
One  new  comer,  a  little  wiser  than  the  rest,  counted 
eleven  corpses  carried  past  his  tent  during  the 
dinner-hour  of  his  first  working  day,  and  thinking 
that  even  gold  may  be  ptirchased  too  dearly,  left 
the  place  instantly.  Man}^  abandoned  it  after 
somewhat  longer  trials.  But  the  greater  number 
fascinated  by  the  universal  richness  of  gold  beds, 
remained  in  defiance  of  disease  and  took  their 
chance."  With  what  result,  the  numerous  graves 
of  the  valley  witness  to  this  day.  It  was  a  scene 
'•to  point  a  moral  or  adorn  a  tale,"  Yet  it  was 
only  one  among  the  thousand  instances,  whether 
we  follow  laboi'  to  the  mines  searching  for  the  dross 


81 


in  its  natural  state,  or  witness  the  hard  struogles 
of  labor,  a  hireling  or  independent,  to  obtain  it  in 
dribs  as  wages  or  profits  in  a  coined  state,  ('ould 
we  for  a  moment  divest  ourselves  of  prejudices  and 
behold  men,  in  myriads,  rushing  across  oceans  and 
continents  to  the  gold  fields  of  California  and 
Australia,  waste  places  in  the  uttermost  part  of  tlu^ 
earth,  watch  them  toiling  in  tlie  gulches  of  the 
mountains,  amidst  all  manner  of  haidshiiis  and 
disease,  beset  by  extreii.es  of  ^v(atller.  exliausting 
work,  exorbitant  prices  for  all  tlie  necessaries  of 
life  and  lawless  societ3\  and  all  this  to  obtain  a 
yellow  substance,  whicli  is  not  fit  for  food,  clothes, 
medicine  nor  shelter,  we  could  but  infer  that  either 
men  have  lost  mental  balance  and  gone  mad,  or  that 
there  is  some  hidden  power  in  gold,"  (Mr.  Patter- 
son had  forgotten  the  legal  tender  decree.) 

In  the  coloii}^  affairs  were  now,  after  the  last 
destructive  panic,  as  we  stated,  in  a  more  deplor 
able  condition  than  they  had  ever  been  before. 
The  tribe  of  Adventurers,  though  few  in  number, 
owned  most  of  the  houses  in  cities  and  towns, 
owned  most  of  the  farms,  all  the  railroads  and  tel- 
egraphs, all  the  leading  mines,  and  held  mortgages 
on  most  all  other  real  estate.  Farmers  plodded 
along  making  a  scanty  living,  as  those,  who  needed 
their  products,luid  but  little  gold  nor  bank  notes  to 
pay  for  them,  and  mechanics  either  worked  for 


82 


Gold  Madness. 


what  scanty,  meager  wages  they  could  obtain  or, 
tramping  the  land  in  quest  of  work,  were  looked 
upon  as  vagabonds  and  criminals  by  the  public. 

We  had  almost  made  up  our  mind  that  the  whole 
colony  would  finally  go  irreparably  to  ruin,  unless 
in  a  short  time  some  extraordinary^  event  would 
awaken  the  colonists  from  their  gold  lunacy,  or 
some  evil  day,  in  outer  despair,  they  would  rise  in 
their  mad  fury,  make  for  the  Adventurers,  and, 
may  be,  the  Governor  himself,  and  wipe  them  both 
from  existence  in  a  twinkle.  We  earnestly  hoped 
that  they  might  return  to  their  reason,  but  began 
seriously  to  fear  the  latter  solution.  Feared  it,  we 
say,  because  loud  and  ominous  mutterings  from  the 
ranks  of  the  working  classes  were  beginning  to  fill 
the  air. 


GOLD  IN  ENGLAND. 


One  night,  unable  to  sleep,  while  pondering  on 
the  future  of  the  working  classes,  there  came 
across  our  mind  a  desire  to  learn  what  became  of 
the  gokl  that  was  carried  to  England,  and  how  the 
toiling  masses  fared  there.  Surely,  we  thought, 
they  cannot  be  suffering  from  want  of  emplo^^ment, 
as  there  is  plenty  of  gold  to  keep  every  man,  woman 
and  child  constantl}^  at  work.  Next  morning,  we 
wrote  to  our  friend  Patterson,  who  was  then  in 
London,  and  he  kindly  favored  us  with  an  essay 
that  he  had  just  published  on  the  subject.  It  is 
astounding  !"  we  exclaimed  after  reading  that  essay. 

What  will  ever  become  of  poor  humanity,  if  this 
gold  infatuation  continues  If  tlie  poor  cannot 
rise  above  their  id'^^latr}^  or  the  Adventurers  do  not 
melt  to  pity  them,  the  world  will  soon  be  but  a  vast 
herd  of  hungry  cattle  driven  by  a  few  unfeeling 
masters.  Here  is  friend  Patterson's  essay  and  letter 
accompan3ang  it :  Dear  friend :  It  gives  me 
pleasure  to  gratify  your  desire  in  reference  to  the 
gold  which  is  being  poured  upon  us  from  all  parts 
of  the  world,  viz  :  what  value  we  put  upon  the 

(83) 


84 


Uold  31  (((hi ess. 


stuff,  and  what  use  we  make  of  it  in  our  exchanges. 
I  do  this  by  mailing  you  a  short  essay  w^hich  I  liave 
just  published.    I  hope  it  will  be  satisfactory. 

VALUE  OE  GOLD. 

One  cubic  foot  of  gold  weighs  1203f  pounds.  The 
same  will  coin  into  $369,124,  in  your  money. 

At  $2.00  per  day,  this  twelve  inch  block  of 
gold  would  keep  one  man  employed  600  years,  18 
generations  ;  ten  men  60  and  100  men  six  years. 
Think  of  one  hundred  men  toiling  six  years  for  a 
rock  one  cubic  foot  in  size  and  board,  clothe  and 
house  them  all  the  time  !" 

If  this  block  of  gold  was  put  at  interest,  as  the 
superstition  goes,  in  600  years  it  would  possess  the 
world.  This  may  seem  a  paradoxical  assertion, 
yet  it  is  of  such  a  character  that  the  truth  con- 
tained ill  it  affects  the  weal  or  woe  of  mankind. 
This  rock  is  really  placed  at  interest,  and  is  fast 
absorbing  all  the  products  of  labor  and  handing 
the  workers  over  in  bondage  to  the  money  power." 

When  we  had  slavery  in  the  British  colonies, 
that  twelve  inch  block  of  gold  would  purchase  800 
human  beings.  In  many  parts  of  the  earth,  to-day, 
it  will  purchase  a  larger  number  of  slaves,  and  in 
semicivilized  countries  of  the  East  it  will  buy 
harems  of  women.'' 

But  let  us  leave  this  horrible  comparison  of 


Commercial  vse  of  (iohl. 


So 


human  being,  and  the  toil  of  liuman  beings,  with  a 
lifeless  rock,  the  whieh  is  too  sad  to  hear  of  all 
ai'ound  us,  and  come  to  the  object  at  hand,  viz  : 
the  function  that  gold  performs  in  the  world  of  (^x 
changes,  and  what  effect  it  has  over  the  activity 
and  well  being  of  man. 

COMMERCIAL  USE  OF  GOLD. 

Gold,  in  highly  civilized  nations,  like  England, 
has  long  since  ceased  to  circulate  as  money  among 
the  people.  Some  mysterious  powder  (it  is  interest) 
draws  it  to  the  banks,  there  to  be  btiried  in  fire- 
proof vaults.  Here  let  us  pause  and  ponder  a 
moment  tipon  the  immense  sacrifices  made  to  ex- 
tract gold  from  its  native  hiding  places  in  Cali- 
fornia, Australia  and  elsewhere,  how  much  labor 
has  been  spent,  how  much  suffering  undergone, 
how  many  graves  prematurely  filled  in  that valley 
of  death,"  on  the  Buckland  Kiver  and  other  places, 
all  for  the  apparent  purpose  of  burying  it  again  in 
artificial  caves  in  banks  ! 

Inconsistenc}^  of  man  ! 

The  largest  of  these  banks,  those  which  enjo^^ 
government  privilege  and  patronage,  hold  an  av- 
erage of  250  millions  of  dollars  of  gold.  This 
amount  is  equal  to  670  cubic  feet,  and  would  fill  a 
room  nine  feet  cube.  Great  nations  possess 
each  an  average  of  S600  millions,  or  a  ^  twelve 


86 


WateJiinf/  Gold. 


feet  cube.''  Behold  the  bh)ck  which  is  universally 
believed  to  uphold  the  fabric  of  industry  and  com- 
merce, and  hence  the  prosperity  of  great  nations, 
and,  without  which,  all  other  natural  and  artificial 
resources  are  made  unavailable!  Verilyj^ if  Jupi- 
ter ever  ruled  the  Heavens,  gold  rules  the  earth. 

WATCHING  THE  GOLD  BLOCK. 

Let  us  now  go  to  "  Plutus  temple,"  the  bank,  in 
the  sanctum  sanctorum  of  which  gold  is  sacredly 
kept,  and  examine  what  functions  it  claims  to  per- 
form in  exchanges.  For  this  purpose  we  will  select 
tlie  greatest  of  all  banks  in  the  world,  viz.:  the 
Bank  of  England,  located  in  London,  the  capital  of 
the  Empire. 

London  contains  a  city  within  a  city,  and  within 
the  inner  city  is  3^et  another,  the  very  heart  of  this 
meti-opolis.  It  is  a  small  place.  In  a  couple  of 
minutes  you  may  walk  across  it  from  side  to  side  and 
from  end  to  end.  Yet  it  is  the  center  and  citadel 
of  England's  greatness,  the  heart  whose  pulsa- 
tions are  felt  to  the  furthest  extremities  of  the 
earth.  The  occupants  of  this  precinct  have  deal- 
ings with  all  the  world.  From  this  spot  proceeds 
the  power  which  helps  on  (?)  the  civilization  of  the 
globe  (accordingly  teachers  of  morality,  professors 
at  our  universities,  inventors,  etc.,  are  not  the  in- 
struments of  civilization,  no,  "  civilization  proceeds 


Wdiclii n(j  (ioJd. 


S7 


from  that  twelve  feet  block  of  gold  in  the  Bank  of 
Enghmd  !")  As  you  look  npon  the  low,  quadi-an 
gular  structure  of  the  bank,  you  are  ovei'conu^  })y 
its  imposing  appearance.  The  dead  wall  around 
it,  scantily  relieved  by  pillars,  let  into  the  front, 
almost  windowless  and  doorless,  bespeak  a  sombi'e 
jeak)usly  guarded  sanctuai}'."  It  is  the  treasure 
house  of  Plutus,  the  sovereign  and  deity  of  the 
precinct  and  of  England.  You  feel  an  awe  and 
somberness  in  the  front  very  accordant  with  all 
ournotions  of  the  Old  Lady  of  Threadneedle  street, 
the  image  of  wealth  and  power. 

Across  Threadneedle  street  stands  the  Eoyal 
Exchange,  with  its  high  pillard  porticoes,  its  wide 
archway  of  entrance  and  large  inner  court,  open  to 
the  sky.  These  two  buildings,  which  far  surpass 
in  size  any  of  the  surrounding  palaces,  fitly  repre- 
sent the  two  powers,  whose  joint  action  constitutes 
the  life  of  this  busy  world.  The  Bank  represents 
money,  the  Exchange  represents  commerce.  Gen- 
erally the  two  act  in  harmony,  sometimes,  however, 
in  rivalry  ;  but  at  all  times  they  deeply  affect  one 
another.  A  panic  on  'change,  makes  a  crisis  at  the 
bank.  A  crisis  at  the  bank  makes  a  panic  on 
'change.  They  are  like  brother  and  sister;  but 
money  is  the  strongest.  Commerce  depends  upon 
money,  and  sometimes  it  is  subjected  to  a  cruel 
bondage.    Linger  here  a  while  and  it  will  not  be 


88 


Watching  Gold 


long  before  you  find  what  vast  issues  are  dependen 
upon  the  presenee  of  gold  in  that  solid  building  of 
the  short  pillars.  Yet,  strange  to  say,  in  this  temple 
of  gold,  gold  cannot  be  seen.''  We  know  from 
officials  returns  that  so  many  millions  of  gold  lie 
in  the  vaults  of  the  bank,  but  the  precious  metal 
makes  no  appearance  in  the  business  transactions 
of  this  mone}^  center.  Bits  of  paper  with  some 
writing  on  them  are  the  sole  visible  agents  of  the 
scene.  Paper,  paper,  paper  everywhere,  but  no 
gold,  not  one  sovereign  to  be  seen.  It  is  only  the 
ghost  of  the  gold  that  occupies  the  stage  of  action. 
The  truth  is  the  whole  operations  of  this  monetary 
metropolis  would  come  to  a  stand  still,  if  they  ha 
to  be  carried  on  with  gold.  Happil}^  the  A^ellow 
dross  is  no  longer  wanted.  (We believe  it.  It  never 
was  wanted.)  Yet  while  gold  is  here  invisible  ; 
while  thousands  who  operate  here  never  see  it, 
visible  or  invisible,  its  presence  regulates  and  affects 
all  the  commercial  operations  of  England,  nay,  of 
the  whole  world.  Those  two  brief  lines  in  the  city 
papers  which  tell  whether  that  gold  block  is  swell- 
ing or  shrinking,  coiitracting  or  expanding,  are  in 
reality  the  vital  pivot  of  the  industrial  movement 
of  England.  If  gold  is  coming  to  the  bank,  every- 
body is  elated,  and  business  and  enterprise  go  freely 
ahead;  if  gold  is  leaving  the  bank,  ever^^body  be- 
comes uneasy  and  enterprise  comes  to  a  stand  still. 


(}()!(}  ^FadiHsx. 


But  why.  it  may  l)e  asked,  slioiild  a  little  more 
or  less  gold  in  the  bank  prodviee  such  immense  e(- 
feet  upon  the  prosperity  of  a  nation  V  (P^elio 
answers  back  why?)  This  tem])le  of  INIammon  is 
based  upon  gold,  and  this  basis  has  often  been  found 
to  be  preenjinently  iinstal)le  and  dangerous.  The 
golden  block  perpetually  oscillates  to  and  fro ;  and 
each  of  its  greater  oscillations  is  felt  like  the  sliock 
of  an  earthquake.  It  rises  and  falls  ;  expands  and 
contracts,  and  sometimes  fears  are  entertained  that 
it  will  slip  away  from  its  cave  altogether.  Then 
goodly  commercial  houses  go  down  by  the  hun- 
di'eds,  not  because  the}'  are  ill-built,  not  from  any 
fault  of  the  architect,  or  the  occupants,  but  sim])ly 
because  the  foundation  of  (a  nine  foot  cube,)  cham- 
ber full  of  yellow  dross,  upon  which  they  stood, 
has  given  Avay.  Of  late  years  these  oscillations 
hav(^  been  more  frequent  and  moi-e  disastrous. 
Every  ten  years  or  so.  a  convulsion  takes  })lace,  not 
of  nature,  but  of  human  folly.  Avhich  spreads  terror 
and  desolation  far  and  wide,  [)aralyzing  the  busi- 
ness of  the  whole  country  as  effectually  as  if  an 
earthquake  had  upheaved  the  land  and  strewed 
with  ruins  the  pillars  of  our  national  industiw. 
The  merchants  and  the  manufacturers,  the  shop 
kee])ei's  and  the  wage  workei's  alike,  find  their  trade 
suddenly  st()p])ed  and  their  mtnms  of  living  suddenly 
swept  away.    Suffering  and  want  spread  over  the 


90 


Gold  3Iadness. 


country  as  if  a  great  famine  was  on  hand.  There 
is  paralysis  of  industry,  deartli  of  employment,  and 
hard  times  are  felt  universally.  Is  there  not  some- 
thing wrong  here  ?  (Echo  answers  back  again 
"  something  wrong.")  Ought  the  presence  or 
absence  of  a  few  cubic  feet  of  gold  in  a  bank  make 
so  vast  a  difference  between  national  prosperity,  on 
the  one  hand,  and  national  disaster  and  wide  spread 
ruin  on  the  other?  How  will  posterity  judge 
us  when  it  reads  that  we  made  the  huge  fabric  of 
industry,  upon  the  activity  of  which  human  wel- 
fare depends,  stand  like  an  inverted  pyramid  rest- 
ing on  such  a  narrow  and  unstable  apex  of  a 
chamberful  of  useless  metal  ?  Will  they  not  charge 
us  with  folly  and  barbarism  ?"  (Undoubtedly  they 
will.) 

From  our  friend's  description  of  affairs  in  Eng- 
land, in  regard  to  the  influence  of  those  26  men,  who 
watch  the  gold  block  in  the  Bank  of  England,  (like 
priestesses  of  old  used  to  watch  the  Vestal  Fires,)  it 
is  patent  that  that  country  is  also  cursed  with  a 
legal  tender  decree,  and  that  Adventurers  there 
have  complete  control  of  the  people,  who  have  also 
fallen  unto  the  same  gold  hallucination  that  the 
colonists  have.  Otherwise  why  would  they  tremble 
and  stop  commerce  and  industry  at  the  mere  shrink- 
ing of  a  gold  block  ? 

Be  as  it  may,  the  result  of  the  gold  discoveries 


Gold  3radu('ss. 


9] 


and  tlie  condition  of  the  Old  (yountry,  where  most 
of  it  had  gone  to,  cut  off  all  hope  of  relief  ever 
coming  from  either.  Therefore,  possible  or  impos- 
sible, the  only  gleam  of  hope  which  remained  in  us 
now  was  to  cure,  or  in  some  way  modify,  the  men- 
tal disease  in  the  colonists,  and  to  confine  the  dis- 
asters of  the  decree  to  taxation  alone.  To  this  we 
turned  our  attention. 

GOLD  LUNACY  IN  THE  GOVERNOR. 

One  of  the  most  pernicious  tacts  which  happened 
in  tliis  gold  benighted  colony,  was  that  the  present 
Governor  had  become  affected  with  the  same  gold 
lunacy.  He  had  utterly  forgotten,  or  perhaps  had 
never  read,  of  the  condition  of  the  colony  previous 
to  his  fatlier's  fatal  legal  tender  decree,  and  when 
old  men  and  women  )iarrated  to  children  "  how, 
once  upon  a  time,  the  colonists  had  been  swimming 
in  abundance  and  happiness  and  that,  at  that  time, 
debts,  mortgages  and  scarcity  of  money  were  un- 
known," the  Governor  classed  sucli  narrative  with 
the  traditional  legends  among  all  nations  of  tlie 
earth  viz  :  that  their  ancestors  had  lived  in  a  par- 
adise, whence  they  were  expelled  on  account  of 
some  great  sin."  He  now  was  a  confirmed  believ- 
er that  the  colony  would  surely  go  to  ruin,  and  he 
w^ould  be  powerless  to  prevent  it,  if  gold  w^as  to 
take  wings  and  disappear. 


92 


Tlie  Gocenior'x  Lunacy. 


The  consequence  of  this  mental  disease  in  tlie 
Governor,  was  very  serious.  It  intensified  tluit  of 
the  colonists  and  also  caused  a  series  of  grievous 
wrongs,  on  his  part,  which  atfected  both  the  wel- 
fare and  liberty  of  the  people.  But  liberty,"  we 
say,  how  could  a  people  be  called  free  when  they 
were  utterly  at  the  mercy  of  Adventurers  for  the 
means  of  support  ?  What  difference  was  there  be- 
tween such  a  people  and  a  besieged  army  with  its 
supplies  cut  off*!  Both  were  equally  compelled  to 
give  up  liberty  "  and  surrender.  But  the  mis- 
ery of  the  colonists  was  aggravated  by  many 
legislative  acts  of  the  Governor,  under  the  pretense 
that  he  was  ^^establishing  justice  and  maintaining 
liberty  among  his  people."  We  could  adduce  enough 
such  acts  to  fill  a  large  volume,  but  will  limit  our- 
selves to  very  few. 

We  have  already  stated  the  one  forbidding  ever}^ 
body  issuing  notes,  except  the  Adventurers,  upon 
the  foolish  plea  that  such  notes  must  be  able  to  buy 
gold,  and  that,  accordingly,  gold  must  be  in  reserve 
to  redeem  the  notes.  Any  one  can  readily  see  the 
enormity  of  such  partiality.  It  made  the  rich 
richer  and  the  poor  poorer.  The  very  ones  who 
needed  the  notes  to  keep  an  account  of  products 
and  exchanges,  were  forbidden  to  issue  them,  and 
the  ones  who  did  not  produce  anything,  and  hence 
had  nothing  to  exchange,  were  granted  the  abso- 


GoJ(J  3f(((hi('ss. 


lute  monopoly  thereof.  Such  notes  should  never  be 
intended  to  purchase  gold,  'i'he  object  should  be 
to  put  people  to  work  and  enable  them  to  exchange 
the  products  of  their  work.  Look  at  the  fact  as 
we  may,  such  notes,  issued  by  the  owners  of  gold, 
were  intended  as  means  of  plunder  alone.  Yet 
the  mentally  befogged  colonists  could  not  see  into 
the  fraud,  aud  had  hailed  bank  notes  as  a  blessing. 
But  the  Governor,  poor  deluded  man,  was  under 
the  impressiou  that  the  uotes  could  not  possiblv  be 
good,  unless  exchaugeable  with  gold.  Xor  did  all 
the  financial  panics  which  we  have  described  teach 
the  Governor  that  his  views  were  wrong. 

Another  legal  wrong  was  this  :  When  co-op- 
eration was  necessary  to  execute  important  enter- 
prises, such  as  w^orking  a  mine,  building  a  railroad, 
lighting  a  city  or  supplying  it  with  water,  etc.,  he 
made  it  the  law  that  the  co-operators  should  apply 
for  and  obtain  a  charter  or  permission  to  so  co-op- 
erate. But  the  Governor  would  not  grant  such 
charter  to  any  but  those  who  had  gold,  made  into 
money.  It  resulted,  of  course,  that  Adventurers 
alone  could  organize  for  the  purpose.  This  placed 
all  the  great  enterprises  of  the  colou}^  in  the  hands 
of  a  (*lass  of  men  who  never  intended  doing  a 
stroke  of  w^ork,  and  prevented  the  organization  of 
those  who  had  all  the  work  to  do. 

We  had  a  talk  with  the  Governoi'  in  rt^ference  to 


94 


Gold  Madnens. 


this  iniquity.  He  replied  '^that  it  was  necessary 
to  protect  the  workingmen  in  their  pa}  ,  and  that 
Adventurers  alone,  who  had  gold,  could  pay  them.'' 

But  when  men  get  paid  for  an  object,  does  it  not 
mean  that  they  have  sold  that  object  to  another?" 
we  inquired,  and  added,  suppose  workingmen  de- 
sire to  unite  and  build,  or  make  something  to  hold 
and  use  themselves,  and  not  sell  to  another  ;  wh}^ 
refuse  to  them  a  charter  to  enable  them  to  do  so, 
whether  they  have  au}^  gold  or  not?" 

The  Governor  had  been  in  the  habit  of  seeing 
workmen  so  poor  that  he  could  not  comprehend 
how  the}^  could  build  or  produce  anything  to  keep. 
Bo  he  held  to  his  id^a  that  he  would  grant  no  char- 
ter, unless  the  parties  applying  had  some  gold  to 
lay  down  as  security  for  the  payment  "  of 
those  who  did  the  work. 

This  wrong  was  followed  by  another  equally  un- 
just, though  not  so  far  reaching  in  its  evil  conse- 
quences. In  business  enterprises,  dollars  had  a 
right  to  vote  in  place  of  men,"  as  if  governments 
had  been  instituted  especially  for  the  benefit  of 
gold.  Let  us  illustrate  this  fact.  Suppose  thirteen 
men  formed  an  association,  for  the  purpose  of  car- 
rying on  business  and  obtained  a  charter.  Suppose 
again  that  "  three  "  of  them  invested  each  four 
thousand  dollars,  or  in  the  aggregate,  twelve  thou- 
sand, while  the  other     ten  "  invested  only  one 


(Utld  Mddncss. 


95 


thousand  dollars  eaeli,  or  togetliei*,  ten  tliousand. 
Ill  this  case  the  tliree  wealthy  ineiiibers  could  con- 
trol the  concei'n  in  absolute.  Tliey  could  elect 
officers,  fix  salarie;.^,  etc.  The  ten  might  as  well 
abandon  all  they  had  in  the  association  to  tlie 
mercy  of  the  three.  Here  the  law,  instead  of  being 
a  protection  to  the  weak  against  the  strong,  pro- 
tected the  strong  against  the  weak  (in  money). 

Many  Adventurers  amassed  immense  fortunes  by 
making  use  of  this  iniquitous  system.  The}^  would 
start  big  enterprises,  sucli  as  railroads,  etc.,  get  the 
colonists  to  subscribe  bonds,  give  them  shares  in 
the  association,  taking  care  to  hold  a  majority  of 
these  shares  themselves,  finally  pretend  to  borrow 
more  money  from  their  colleagues,  mortgage  the 
enterprise,  have  the  whole  sold  for  debts  and  thus 

freeze "  out  the  minority  which  often  implied 
whole  portions  of  the  colony. 

The  wrong  of  all  wrongs,  however,  which  grew 
out  of  the  Governor's  gold  madness,  was  the  as- 
sumption that  he  had  a  right  to  barter  away  and 
put  the  colonists,  into  bondage  for  the  k)an  of 
gold,  and  often  times  for  redeemable  (?)  bank  notes. 
This  detestable  policy  had  its  origin  in  the  foolish 
idea  that  it  was  necessary  to  go  round  by  way  of 
gold  in  order  to  obtain  whatever  he  r,tood  in  need 
of  fi  'om  his  people.  Accoi'dingly  when  he  needed 
men  or  materials  and  had  no  gold,  if  he  believed  it 


1)G 


Gold  3Ia(hi('SH. 


too  great  a  hardship  to  force  the  colonists  to  sacri- 
fice their  property  to  tlie  Adventurers  aud  bring  it 
to  him,  that  he  might  give  it  back  to  them  in  pay- 
ment, (the  same  vicious  circle),  he  would  stamp  and 
sign  a  batch  of  certificates  of  bondage,''  which  he 
called  bonds,  and  peddle  them  about  from  bank  to 
bank,  first  among  the  colonial  Adventurers,  and 
then  abroad  among  foreign  ones,  (think  of  it,  sell- 
ing his  own  people  into  bondage  to  foreigners  !)  for 
a  ton  or  so  of  gold,  bring  this  stuft'  home  and  go  to 
stamping  checks  upon  the  pieces,  and,  be  it  said, 
stamp  upon  the  same,  tlie  usual  blasphemy  that 

IN  GOD  HE  TRUSTED,"  wliich  bore  the  lie  on  its 
face.  Had  he  trusted  in  God,  or  in  his  people,  he 
would  not  have  gone  abroad  to  buy  gold,  for 
both  God  and  people  were  in  the  colony.  JSTo,  it 
was  in  gold  he  trusted,  as  his  action  proved. 

When  a  friend  luimed  this  fact  to  the  Governor, 
showing  him  also  the  embarrassment  that  he  and 
the  tax-payers  would  be  under,  in  case  the  Adven- 
turers should  refuse  to  furnish  the  gold,  or  did  not 
have  it  to  furnish,  he  frankly  acknowledged  that  he 
could  not  comprehend  in  wliat  other  w^ay  he  could 
ever  pay  his  people  for  the  things  he  obtained  from 
them.  It  was  his  rule,  he  said,  to  take  nothing 
from  them  without  compensation,  and  gold  was  the 
only  legal  tender  article  to  pay  with.  ''But,"  we 
said,  "  you  do  not  need  to  pay  your  people  for  what 


(Uihl  ifaihtcas. 


97 


Uiey  funiish  you."    Tliey  do  not  exiR.ct  to  be  paid. 

Tliey  are  well  aware  that  tliey  are  in  duty  bound 
;to  maintain  the  govenunent.  A  just  and  equitable 
japportionment  of  the  contributions  is  all  tliey  ex- 
;pect.    Gold  cheeks  make  the  tax  harder  to  pay  and 

double  in  volume.  Therefore  it  is  unwise  antl  un- 
.just.  And  we  entreated  him  to  return  to  thepaper 
x;heck  system. 

I    The  Governor  replied  that  one  of  his  predeees- 
isors,  before  his  dynasty  had  been  established,  and 
^wheii  the  colony  was  at  war  with  the  mothei- 
;pounti-y,  had  tried  paper  notes,  and  they  had  so  de- 
preciated, that  they  ceased    circulating,  causing 
,|reat  losses  to  the  people.    He  meant  the  so-called 
Continental  scripts  during  the  Revolutionary  war. 
[n  reply,  we  first  endeavored  to  convince  him  that 
he  act  of  issuing  oi-  stamping  a  quantity  of  paper, 
vhich  is  originally  of  no  value,  then  after  a  time 
lestroying  it  or  casting  it  away  as  worthless,  could 
lot  possibly  do  any  harm  to  a  peoj>le,  except  the 
ery  small  loss  of  time  and  material  in  making  the 
•aper  and  stamping  it.  On  the  contrary,  we  reason- 
(1,  if  the  issue  of  such  paper  served  to  emplov  labor 
ml  was  thus  the  means  of  building  a  railroad,  for 
tistance,  it  was  a  boon  to  that  extent.    When  they 
3as.Hl  to  use  it  in  circulation,  |because  tliev  may 
ave  concluded  that  being  mere  paper  is  worthless, 
ley  surely  would  not  consider  the  railroad  worth- 


98 


lesB,  and  cast  it  away,  also.  Consequently,  instead 
of  losing  by  such  issue  of  notes,  tliey  really  gain  a 
railroad.  We  then  continued  that  ''the  questi^Mi, 
with* a  people  was  not  to  declare  war  against  pieces, 
of  paper,  harmless  when  made  and  harndess  when 
destroyed.  The  question  was  ti  learn  how  to  us(v 
those  pieces  of  paper.  AYe  have  been  using  them 
wrong,"  we  said.  Let  us  use  them  aright  and| 
not  forbid  their  utility.  If,  by  the  use  of  notes,| 
we  can  employ  men,  who,  without  the  same,  would 
have  remained  idle,  we  have  already  accomplished 
a  good  work.  Our  next  object  should  be  to  protect 
the  workers  in  the  ownership  of  the  wealth  they  pro- 
duce. Paper  notes  have,  of  course,  no  manner  ol 
value  within  themselves.  They  should  be  used 
to  tally  contributions  of  work  and  materials  fi  - 
nished by  each  man  or  woman  in  the  wealth 
produced.  We  should  tell  a  worker  that  thi^ 
paper  note  is  evidence  of  your  investments  in  tht 
enterprise,  not  the  investments  themselves.  If 
instead,  we  deceive  the  holder  by  making  him  be 
lieve  that  the  note  is  the  actual  wealth,  because  he 
can  dupe  others  in  the  same  way,  and  he  takes  tlu 
paper  note  for  his  portion,  giving  for  it  the  result  oJ 
his  work,  he  will,  of  course,  soon  discover  that  hih 
paper  is  worthless  and  that  ho  has  been  defrauded 
of  his  property.  Bank  notes,  issued  by  Adventu- 
rers.  read  about  as  follows  :    ''  Friend,  let  me  hav(  j 


Gold  3f(((hiess. 


90 


your  property,  and  take  for  it  this  note,  which  will 
enable  you  to  get  an  equivalent  from  your  neig]>.- 
bors,  and  they  from  their  neighbors,  thus  round  and 
round  in  perpetuity."  Such  a  note  is  worse  than  a 
deception. 

^'  Your  Elxcellency,  we  concluded,  should  not  con- 
found a  most  beneficent  document  with  a  similar 
pernicious  one  now^  in  use." 

The  Governor  could  not  see  the  ditference  in  the 
use  of  paper  notes.  All  circulating  notes,  he  said, 
should  be  redeemable  in  gold.'' 

The  histoiy  of  the  Continental  Scripts,  he  was 
alluding  to,  was  as  follows  : 

A  few  years  before  that  Eevolution  in  the  colony 
(1739),  the  farmers  of  the  country,  who  lived 
yet  undei*  the  idea  that  production  and  exchanges 
should  be  cari-ied  on  by  means  of  some  to}^  or  trink 
et,  and  who  had  been  using  for  this  purpose  beads, 
cowry,  shells,  wampum,  etc.,  had  concluded  to  try 
paper  notes.  These  notes  were  not  to  be  ^'  redeem 
ed  "  in  beads  nor  wampum,  but  were  to  be  received 
in  payment  for  all  sorts  of  commodities  and  serv- 
ices. If  a  farmer  gave  notes  to  a  mechanic  for  a 
plow,  for  instance,  he  obligated  himself,  and  pledg- 
ed his  farm  for  the  fulfillment  of  his  obligation, 
that  he  would  receive  them  back,  at  face  value, 
for  any  of  his  products  or  work.  Mechanics  united 
with  the  farmers  in  the  scheme  and  promised  to  re- 


100 


Continental  Scrijjts 


ceive  the  notes.  The  reason  which  the  farmers  gave 
for  the  issue  of  such  notes  was  tlie  alleged  scarcity 
of  beads  and  wampum  to  do  business  with.  The 
scheme  proved  a  great  boon  to  ever^^bod}^  in  the 
country.  It  revived  business  wonderfully,  and  the 
notes  did  not  carry  the  fruits  of  labor  in  the  hands 
of  Adventurers.  As  soon  as  the  Governor  of  the 
Old  Country  learned  of  the  Farmers  and  Mechan- 
ics notes  in  his  colony,  for  some  unaccountable 
reason,  he  ordered  every  one  of  them  destroyed 
and  forbade  the  further  issue  of  them.  What  harm 
those  notes  could  do  to  the  Governor  across  the 
ocean,  the  Lord  only  knew.  It  pricked  his  pride, 
we  suppose,  that  farmers  and  mechanics  should 
undertake  to  do  a  thing  without  his  permission. 
Or  he  wanted  them  to  depend  on  the  Adventurers 
in  his  country  for  money.  But  the  note  issue  had 
to  stop,  and  production  and  commerce  curtailed 
again  to  the  quantity  of  wampum  and  cowries  in 
circulation. 

Two  prominent  colonists  of  that  time,  Sani 
Adams  and  John  Coats,  got  quite  wrothy  at  sucli 
interference  by  the  Governor  in  the  affairs  of  the 
colony.  They  aroused  the  colonists  and  formed  a 
political  party,  which  proved  the  beginning  of  th(^ 
subsequent  Revolution. 

When  finally  that  revolution  broke  out  the  col- 
onists had  no  wampum  to  pay  soldiers  nor  buy 


(\>atiiic)it((l  S('rij)fs. 


10] 


what  they  needed,  besides,  be  it  also  Iviiowii,  tluMi- 
minds  were  eonsideiably  addled  about  moiietai y 
trinkets,  such  as  the  gold  and  silver  of  the  Old 
C()untr3\  where  old  men  had  been  raised. 

Under  tlie  pressure  of  the  Revolution,  the  then 
temporary  Governor  issued  ''scripts,"  but  instead 
of  making  said  scripts  receivable  "  for  all  debts 
and  dues  to  the  government  and  between  individu- 
als, he  made  them  "  redeemable  in  Spanish  milled 
dollars."  Where  on  earth  were  these  Spanish 
milled  dollars  to  come  from  ?  Who  was  to  buy 
them  ?  What  and  how  mucli  was  to  be  given  for 
them  ?  As  soon  as  the  Spaniards  heard  of  such 
foolish  decree,  no  doubt,  the}'  raised  the  value  of 
milled  dollars,  believing  that  the  colonists  would  be 
forced  to  buy  them.  What  nonsensical  cruelt}^  ! 
Was  a  colonist,  for  instance,  to  sell  to  the  Governor 
a  beef  to  feed  the  soldiers  and  take  the  scripts,  then 
be  compelled  to  sell  another  beef  to  the  Spaniards 
for  milled  dollars  to  redeem  the  scripts  in  his  hands  ? 
In  the  name  of  common  sense  what  sort  of  distort- 
ed monetary  system  would  this  be?  Where  was 
the  good  of  it?  The  beef  furnished  to  the  Gov- 
ernor paid  the  tax,  and  the  script  proved  the  fact. 
What  had  the  Spaniards  and  their  milled  dollars  to 
do  with  that  fact?  Why  compel  the  colonists  to 
loose  two  beeves  when  one  was  sufficient?  Where 
would  such  S3' stem  land  them  ? 


102 


Continental  Scripts. 


AVell,  the  Governor  issued  the  continental  scriptr^, 
bought  beef,  bread,  horses,  ck)thes  ;  paid  sokliers, 
etc.    Wlien  the  war  was  over  the  Governor  had  no 

Spanish  milled  dollars  "  to  redeem  the  scripts 
with,  was  wise  enough  not  to  force  the,  already  ex- 
haustv-'d,  colonists  to  sacrifice  property  to  obtain 

Spanish  milled  dollars    wherewith  to  redeem  the 
script  in  their  own  hands,  so  the  whole  fabric  of 
absurdities  and  impossibilities  fell  to  the  ground 
And  wliat  of  it?    Did  those  colonists  lose  one  cent 
more  than  they  had  already  lost  in  tlie  war?  The 

redeemable "  business  comes  always  from  the 
quarters  of  speculators  in  money.  When  said  con- 
tinental scripts  had  fallen  in  value,  that  one  Spanish 
milled  dollar  would  buy  twenty  dollars  worth. 
Adventurers  of  those  times,  (and,  on  reading  liis 
tory,  it  appears  that  every  generation  has  been 
cursed  b}^  such),  purchased  the  scripts,  then  endeav- 
ored to  have  the  Governor  lay  a  tax  of  Spanish 
milled  dollars  on  the  people  and  redeem  them  at 
par,  or  bond  the  people  to  redeem  them  in  the 
future,  and  pay  interest,  in  Spanish  milled  dollars, 
in  the  interval.  As  a  plea  for  their  nefarious  de- 
mand, they  appealed  to  the  credit  and  honor  of 
the  Governor,"  as  if  it  was  creditable  and  honora- 
ble to  rob  the  many  and  give  to  the  few.  Fortu- 
nately the  Governor,  either  of  his  own  will,  or 
because    of    tlie    destitute  condition   of  the  tax 


103 


payers,  refus(Hl  to  comply  witli  tlu^  Adveiilurerh' 
request,  and  the  sei'ipts*  disapj)eare(l.  Tliey  had 
})erf()niied  their  funetions  and  passcnl  away. 

Under  the  gohl  delusion,  wars  liave,  geneially, 
been  seasons  of  immense  profits  to  Adventurei's, 
just  as  battles  are  harvest  tields  to  buzzards.  Dui'ing 
that  Revolution  they  failed  to  gather  booty.  But 
the}'  made  it  up  hugely  on  a  subsequent  Rebellion 
among  the  colonists  themselves,  at  which  time  the}^ 
were  better  prepared  and  sort  of  allied  with  the 
Governor,  as  we  have  seen  in  the  foregoing  ])ages. 

Let  us  narrate  this  latter  event. 

The  colonists  fell  out  among  themselves  about 
some  trivial  matters  wdiich  they  called  States 
Rights,''  and  threatened  to  disolve  the  colon v-  The 
Governor  felt  sore  distressed  to  prevent  a  dissolu- 
tion. Not  that  he  lacked  men  or  materials  on  his 
side,  but  he  lacked  the  money  to  pay  "  the  men 
and  "  buy  "  the  materials.  On  the  part  of  the  Ad- 
venturers, if  there  is  a  think  that  they  fear  is  the 
sound  of  the  cannon.  Tlie  saying  that  capital  is 
timid  "  h<isbecome  a  proverb;  and  if  there  is  a  thing 
the}^  love  it  is  money.  So,  as  usual,  when  this  re- 
bellion broke  out,  gold  disappeared,  and  bank  notes 
became  very  scarce.  Under  the  gold  monomajiia, 
what  could  the  Governor  do  ?  A  wise  friend  advised 
him  to  have  plates  engraven  and  print  notes  of 
his  own.    ^' Did  not  Adventurers  hire  uhmi  and 


104 


Treasury  Notes, 


purchase  goods  with  their  notes?"  argued  this 
friend.  "  Let  us  do  likewise,"  he  said.  But,"  re- 
plied the  Governor,  "  most  of  the  colonists  are 
indebted  to  Adventurers  who  would  not  take  our 
notes  in  payment."  Order  3^our  notes  to  be  'Me 
gal  tender,"  as  your  predecessor  ordered  the  gold  of 
a  hunter  to  be,"  rejoined  this  patriot,  •'  and  compel 
these  Adventurers  to  receive  them. "  To  this  he  ad- 
ded that  the  salvation  of  the  countr}^  was  more  im- 
portant than  the  surfeit  of  a  few  lazy  Adventurers. 

''Eureka!"  shouted  the  friends  of  the  Governor 
in  chorus,  "  salvation  is  found." 

The  news  of  the  money  remedy,  as  })roposed, 
came  to  tlie  ears  of  the  Adventurers  in  their  pal- 
aces, and  they  felt  it  like  the  shock  of  an  earth- 
quake. "  Demetrius,"  the  master  workman,  at 
once  called  a  convocation  of  the  craft,  (Acts  XIX, 
24),  and  said  :  Ye  know  that  b}"  this  craft,  (mean- 
ing the  legal  tender  gold  and  "  redeema'ole  "  bank 
notes  business),  we  have  our  fortunes.  Moreover 
ye  heard  how  a  friend  of  the  Governor  has  persua- 
ded him  to  take  this  business  into  his  own  hands 
and  issue  "legal  tender"  notes,  so  that,  not  only 
our  vast  note  industry  is  in  danger,  but  the  ver}^ 
foundation  of  the  whole  structure,  gold  itself,  may 
be  set  at  naught."  When  the  craft  heard  these 
sayings,  they  were  filled  with  wrath,  and  cried  out 
saying:    "  Great  is  gold,  the  money  of  the  world 


ScrjH'nfs  (if  Work. 


lOf) 


and  only  redeemer/'  and  the  whole  tribe  of  them 
was  in  commotion.  And,  wlien  they  had  consulted 
together,  they  proceeded  to  the  city  of  tribulation 
to  la}^  their  grievances  before  the  Governor. 

There  this  bullion  tribe  presented  to  the  Governor 
the  following  monetary  scheme  : 

1st.  The  Governor  to  be  allowed  to  issue  a  few 
notes,  to  be  used  only  tw^o  years,  then  collected  in 
taxes  and  cancelled. 

2d.  The  Governor  sliould  issue  large  amounts  of 

interest-drawing-bonds,'-  and  sell  them  to  Ad- 
venturers for  their    redeemable  "  (?)  notes. 

A  witness  to  the  said  proposal  said,  that  the 
plan  displayed  great  sagacit}^  on  the  ^'<\Yi  of  the 
Adventurers/'  and  adds  that  "the  Governor  thought 
well  of  the  proposition  to  make  the  colonists  return 
his  notes  in  taxes,  as  he  had  no  gold  to  redeem 
them  with,"  but  that  he  could  not  comprehend  the 
balance  of  the  scheme.  "It  seemed  to  him,  said 
the  Governor,  that  out  of  it  would  come  "  turke}^  " 
to  the  Adventurers  and  "  buzzard  "  to  the  colonists, 
all  the  time,"  as  the  traditional  story  goes.  Then 
the  Govei'nor  went  near  losing  his  temper  and  break- 
ing friendship  with  the  tribe  of  Adventurers.  We 
would  have  shed  no  tears  over  it.  Another  friend 
of  the  Governor,  on  hearing  such  audacious  propo- 
sition, went  so  far  as  to  "  object  to  any  and  every 
scheme  for  robbing  the  colonists."    These  were  the 


106 


Serpents  at  Work. 


very  words,  and  he  turned  his  back  on  the  Adven- 
turers, adding  that  they  did  not  propose  to  be 
imposed  upon  in  any  manner  nor  shape  by  spec- 
ulators.'' 

When  we  read  the  report  of  that  conference,  we 
were  much  elated,  hoping  to  see  a  new  era  in  the 
monetary  affairs  of  the  colony,  probably  the  very 
downfall  of  gold,  and  the  end  of  the  redeemable  " 
bank  notes  fraud.  But  such  era  had  not  come  yet, 
and  we  merely  passed  through  another  disappoint- 
ment. Those  were  trying  times,  however,  and  the 
Adventurers  were  careful  not  to  arouse  too  strong 
an  opposition.  So  they  tarried  in  the  city  of  trib- 
ulation several  days,  and  had  many  conferences 
with  the  clerk,  who  had  charge  of  the  money  busi- 
ness, and  finally  persuaded  him  to  stop  issuing 
''legal  tender"  notes.  After  this  they  set  to 
convincing  other  friends  of  the  Governor  that  the 
issue  of  irredeemable  "  legal  tender  notes  was 
contrary  to  the  laws  of  the  colony.  (They  had 
reference  to  the  terrible  decree  which  had  conferred 
that  privilege  on  gold). 

To  make  this  distressing  story  short,  the  Adven- 
turers worked  their  underground  wires  so  skillfully 
that  finally  they  had  the  Governor  and  all  his  as- 
sistants entirely  under  their  control,  and  made 
them  sign  a  written  contract,  that  the  issue  of  legal 
tender  notes  should  be  stopped,  and  billions  of  in- 


Serpen  fa  Successf  ul. 


107 


terest  drawing  bonds,  and  luindreds  of  millions  of 
bank  notes,  issued  in  their  stead.  Thus  the  mone- 
tary machiner}^  of  the  colony  was  again  turned 
over  to  the  Adventurers,  with  the  following  im 
provemetit  in  their  favor,  viz  :  that,  as  they  col- 
lected outstanding  notes  of  the  Governor  in  interest, 
they  would  exchange  them  for  a  bond  on  which  gold 
interest  should  be  paid,  and  ninety  per  cent  of  its 
face  value  in  bank  notes.  They  would  get  $100  in 
bond  and  $90  in  notes,  which  the}^  loaned  again  to 
colonists,  and,  alas,  to  the  Governor  also.  What  a 
field  of  booty  !  Was  such  stupendous  plan  for  rob- 
bing a  people,  on  a  large  scale,  ever  devised  by 
mortal  man  since  the  world  has  been  in  existence  ? 

Under  it,  the  soldiers  did  all  the  fighting,  the 
Governor  made  all  the  money,  the  colonists  fur- 
nished everything  needed,  and  the  Adventurers 
came  out  of  their  safe  retreat,  at  the  end  of  the 
war,  millionaires.  The  final  result  is  to  be  seen  all 
over  the  colon}^  unto  this  day,  viz:  Governor  and 
people  deeply  indebted,  soldiers  killed  or  crippled 
and  poor,  and  the  tribe  of  Adventurers  as  rich  as 
Croesus  and  "  masters  of  the  situation. 

Thus  like  a  man  on  quick  sand,  every  monetary 
move  the  colonists  have  made  since  that  fatal  le- 
gal tender decree,  has  sunk  them  deeper. 

Yet  how  often  our  thoughts  would  revert  to  that 
time  when  the  Governor  had,  bravely,  issued  those 


108 


What  Could  be  Done. 


few  millions  of  legal  tender  notes  of  his  own  ;  how 
the  colonists  were  aroused  to  activity,  how  they 
furnished  the  Governor  with  men  and  materials  to 
quench  the  Rebellion,  and  at  the  same  time  pushed 
improvements  of  all  descriptions,  opening  new  farms 
and  mines,  building  new  towns,  and  enlarging  the 
cities,  extending  railroads  and  telegraph  lines  more 
than  had  ever  been  done  before  in  the  same  period 
of  time.  It  really  seemed  as  if  the  war  was  prov- 
ing a  boon,  instead  of  a  calamity.  However  this 
wonderful  development  was  due  to  those  notes, 
'  greenbacks,'  they  called  them,  which  served  to  keep 
the  colonists  employed.  The  war  was  a  hindrance 
to  progress,  as  it  held  a  large  number  of  colonists 
from  production,  and  was,  moreover,  a  destructive 
agency,  as  all  know.  Had  those  legal  tender  notes 
been  issued  in  time  of  peace,  to  put  the  whole  col 
ony  at  work,  and  none  destroying,  no  living  man 
could  imagine  what  could  have  been  done  in  the 
way  of  improvements  and  progress.  Poverty  and 
want  would  have  been  driven  from  the  country. 
We  actually  believe  that,  if  the  Adventurers  could 
be  made  to  see  what  obstacles  they,  and  their  legal 
tender  gold,  are  to  the  prosperity  of  a  country, 
and  could  be  shown,  as  in  a  panorama,  what  the 
social  condition  would  be,  if  they  would  only  stand 
aside  and  let  the  grand  industrial  army  pass  on- 
ward, surely,  of  their  own  free  will  and  accord,  they 


Ailofhrr  P((7ii('. 


10!) 


would  set  the  people  free.  It  would  be  to  the  iu- 
terest  of  th(^  people  to  peusiou  ev(M'y  Adventui'ei* 
to  induce  them  to  do  so. 

This,  however  is  but  a  wild  dream  of  ours. 

After  the  Rebellion,  with  an  enormous  debt  in 
bonds  and  private  mortgages,  the  money  began  to 
gather  fast  in  the  hands  of  the  Adventurers  to  be 
converted  into  bonds,  and  simultaneously  the  colo 
nists  began  to  go  down  and  down  until  1878,  when 
telegrams  flashed  again  over  the  colony  to  farmers, 
manufacturers  and  merchants  to  make  ready  and 
save  their  property,  if  possible,  lor  tliey  were  in 
the  midst  of  another  terrible  panic.  A  great  Ad- 
venturer had  closed  the  door  of  his  bank  against 
his  depositors,  and  the  closing  of  that  one  door 
shook  the  colon}^  from  end  to  end.  Men  were  dis- 
charged by  the  hundreds  of  thousands,  factories 
closed,  prices  fell,  business  languished,  improve- 
ments stopped,  failures  followed  one  another  and 
desolation  was  over  the  land  once  more. 

The  embers  of  this  last  panic  are  smouldering 
yet,  and  the  colony  is  strewed  with  the  wreck  of 
hundreds  of  thousands. 

Xo  department  of  history  repeats  itself  as  sureh^ 
as  these   hard  times   and  financial  catastrophes 
under  gold  legal  tender  and  gold  i-edeemable 
system. 


INTEREST  ON  MONEY. 


Undoubtedly  the  most  pernicious  error  which  the 
colonists  fell  into  in  regard  to  gold,  is  the  idea  that 
it  actually  can  grow  of  itself.    The  imposition  of 
the  Adventurers  in  demanding  more  gold  than  they 
loaned  them,  which  was  so  palpably  an  impossibil- 
ity before  tlieir  unprejudiced  minds,  had  graduallj^ 
ripened  into  an  article  of  monetary  faith,  and  even 
great  writers  confirmed  this  faith  with  their  works. 
One  of  these  writers,  named  Kellogg,  who  claimed  to 
be  a  friend  of  the  colonists  and  opposed  to  the  exac- 
tions of  Adventurers,  in  his     New  Monetary  Sys- 
tem," says  that  ''accumulative  power*'  is  essential 
to  the  very  existence  of  money,  and  that  "  when 
the  Governor  decreed  gold  to  be  legal  tender,  he 
imparted  to  those  grains  of  the  Adventurers,  as  it 
were,  life  and  energy."    Is  not  this  an  awful  blas- 
phemy against  God  ?    Mr.  Kellogg  continues  to 
say  that  "  that  one  piece  of  gold  has  received 
through  the  legal  tender  decree,  the  capability  to 
"  earn  "  for  its  master,  in  a  given  time,  another 
piece  of  gold  as  large  as  itself."    Would  an  unbi- 
assed mind  believe,  write  and  inculcate  such  absurd 

(110) 


Iufcred  on  Moiieij. 


Ill 


doctrines?  And  do  the}^  not  prove  tluit  Mr.  Kel- 
logg's  mind  was  impaired  on  money  matters,  (Hjually 
as  much  as  tliat  of  the  ccWonists?  But  so  univer- 
sal and  so  lii'm  was  this  creed,  viz  :  that  money 
grows  by  interest,  that  tlie  deluded  colonists  con- 
tinued to  make  contracts,  based  upon  this  growth, 
and  exert  themselves  to  desperation  to  perform 
such  absolute  impossibility. 

We  often  endeavored  to  undeceive  them  by  rea- 
soning, that,  if  the  Governor  had  the  power  of  God, 
and  could,  by  a  simple  decree,  breathe  life  into  dead 
pieces  of  metal,  and  infuse  into  them  the  power 
to  grow  and  multip]3\  there  would  no  longer  be  any 
use  for  mines.  Indeed,  paradoxical  as  it  may  seem, 
one  block  of  gold,  which  the  Governor  should  en- 
dow with  such  energy,  would,  in  time,  outgrow  the 
world.  But,  with  such  creative  power,  wdiy  does 
not  the  Governor  raise  his  ow^n  gold  and  cease 
selling  the  colonists  into  bondage  to  borrow  it?"  we 
asked.  Again.  if  the  Governor  can  set  a  piece  of 
gold  to  work  and  make  it  eai-n  "  another  piece  as 
large  as  itself,  why  does  he  not  set  "  all  the  gold 
in  his  hands  and  make  it  hatch  the  taxes  he  needs, 
especially  in  war  times,  instead  of  torturing  his 
people  and  subjecting  them  to  distress  and  destitu- 
tion, by  forcing  tliem  to  buy  or  borrow  said  taxes 
from  Adventurers  And  again,  "  if  the  Governor 
can  perform  such  miracles,  what  use  has  he  for  all 


112 


Parable  on  Interest, 


that  paraphernalia  of  custom  houses  and  custom 
officials,  revenue  cutters  and  revenue  collectors, 
whose  assigned  duty  is  to  catch  gold."  Finally  we 
asked,  if  the  Governor  is  able  to  impart  to  a 
piece  of  metal  more  power  than  nature  gave  to  it, 
why  not  extend  that  supernatural  power  to  por- 
tions of  the  vegetable  and  animal  kingdoms,  and 
thus  give  rest  to  the  toiling  colonists  ?" 

We  then  tried  to  reach  their  understanding  by 
illustrating  the  pernicious  effects  of  lending  at  an 
increase,  and  demonstrate  its  iniquity  as  viewed  by 
the  authors  of  the  Bible,  in  a  parable  as  follows  : 

Eleven  immigrants  located  inproximit3\  Among 
the  articles  necessary  to  their  sustanance  was  ten 
bushels  of  grain  each  annually.  Hence,  the  very 
first  year,  each  put  a  piece  of  ground  in  grain,  so 
as  to  be  independent  of  the  rest.  Providence  fa- 
vored one  and  not  the  rest.  The  one  had  a  crop  of 
110  bushels.  The  others  had  their  crops  destroyed 
by  chinch  bugs.  The  ten  unfortunate  ones  repaired 
to  their  neighbor  to  borrow  ten  bushels  of  grain 
each,  promising  to  return  it  the  following  season. 
The  neighbor  happened  to  be  a  business  man  " 
from  Eastern  Europe.  He  understood  loaning,  and 
thus  addressed  his  unsuspecting  neighbors  :  [N'ext 
year  you  may  be  as  unfortunate  as  this,  and  con- 
sequently may  not  be  able  to  return  to  me  my  grain. 
I  kuow^  b}^  experience  that  lending  is  a  risky  busi- 


Itacatjcs  o  f  Interest. 


ness,  therefore  a  man  slioiild  be  well  secured  and 
'paid'  for  the  aceomiiiodatioii.  "A  bird  in  liand 
is  worth  two  the  in  bush."  A  bushel  of  grain  now 
should  be  worth  more  tlian  one  bushel  next  yeai*. 
Therefore  I  will  lend  each  of  you  ten  bushels  of 
grain,  on  condition  that  3  ou  make  me  safe  b}^  a 
mortgage  on  your  homes,  and  each  pay  me  an 
extra  bushel  annually  as  interest.  The  ten  neigh- 
bors had  been  under  the  impression  that  the  accom- 
modation would  be  from  their  side,  that  the 
fortunate  neighbor  was  '  overstocked  '  with  grain  ; 
would  be  compelled  to  build  bins  to  store  it  awa^  , 
and  even  then  the  grain  would  be  subject  t^^  loss  by 
weavel,  lats,  rot  or  fire.  They  thought  that,  by 
borrowing  his  surplus  grain,  they  would  be  assum- 
iug  the  care  of  the  grain  and  relieving  him  of  all 
trouble,  expense  and  loss.  Thus  the}^  argued  with 
him,  but  he  was  inexorable.  He  knew  their  desti- 
tute condition,  and  was  i-eady  to  take  advantage  of 
the  same.  Pressed  by  necessity,  the  neighbors  had 
to  accept  his  terms,  and  down  they  fell,  to  that 
extent,  into  perpetual  serfdom.  Henceforth  and 
forever,  the  fortunate  lender,  in  so  far  as  grain  was 
concerned,  (ten  bushels  annually  being  all  he 
needed),  was  relieved  fvom  all  manual  labor,  and 
his  neighbors  burdened  one-tenth  more  toil  in 
perpetuity.  The  one,  and  his  descendents,  would 
form  the  plethoric  nobility  of  the  future,  the  others 


114 


Ravages  of  Interest. 


and  their  children,  would  be  classed  as  plebian 
serfs.  Assuming  the  length  of  active  lite  to  be 
thirt}^  years,  and  teii  bushels  of  grain  per  year  the 
requirement  for  the  consumption  of  each,  accord- 
ing to  the  Bible's  injunction,  that  "  in  the  sweat  of 
thy  brow  thou  shalt  eat  th}'^  bread,"  at  the  end  of 
life,  each  should  have  produced  300  bushels  of 
grain.  But  by  means  of  usury,  the  lender  is  ena- 
bled to  make  110  bushels  sufficient  for  him  and 
his  progeny  to  the  end  of  time,  while  the  other  ten 
will  have  to  produce  each  819  bushels  the  first  gen- 
eration, and  330  bushels  every  succeeding  one. 

What  a  productive  grain  field  this  lending  at 
interest  proves  to  be  to  the  lender  !  AVhat  a  pit  to 
enslave  the  borrow^ers  ! 

But  our  parable  did  not  yet  illustrate  the  full 
force  of  lending^'  money  at  interest,  because  the 
payment  of  interest,  in  grain,  is  possible,  from  the 
fact  that  grain  grows.  Mone}^,  on  the  contrary,  can 
never  rise  in  quantity  above  the  principal  loaned. 
Consequently  we  see  the  general  fate  of  borrowers. 

Again  all  arguments  and  illustration  proved  in 
vain.  We  could  in  no  wise  force  a  ray  of  light 
through  the  universal  darkness,  which  reigned  in 
the  brain  of  the  colonists,  in  regard  to  the  efi*ect  of 
interest.  All  alike  seemed  to  live  in  hope,  that  by 
some  fortuitous,  unforseen  event,  they  would  reach 
the  side  of  the  lenders  and  live  on  revenues.  It 


Til  fc  rest  Del  union . 


115 


was  pitiful,  and  at  the  s;une  time  ludicrous,  to  see 
and  hear  miserable  wretches^  who  had  lost  all  they 
had  by  interest,  strutting  grandly  in  their  dangling 
I'ags,  wdiile  narrating  with  pride  the  history  of  so 
and  so,"  who  had  come  to  the  [)lace  poor,  had,  by 
hook  or  crook,  gotten  hold  of  a  little  money,  had 
turned  to  lending  it,  and  now  was  very  rich  ;  or 
contemptuously  that  of  another,  who  had  come  to 
the  same  locality  with  considerable  means,  had 
invested  these  in  a  farm,  had  toiled  hard  many 
3X^ars  to  improve  it,  had  ruined  his  health  at  it,  had 
gone  in  debt,  and  finally  ended  in  povert3\  Public 
opinion  was  evidently  on  the  side  of  the  lenders 
and  agaiust  the  oppressed.  Then  again  such  sto- 
ries as  were  told  about  tlie  increase  of  raone}^  by 
interest.  If  mone}^  had  been  a  sort  of  prolific 
fowl,  and  banks  had  been  incubators,  no  more  won- 
derful feats  of  increase  could  have  been  per- 
formed. 

Here  are  a  few  of  such  stories  : 

Alexander  Smith,  ringleader  of  the  mutiny  on 
the  ship  Bount}'^,  saved  the  life  of  a  midshipman 
from  drowning.  This  midshipman  put  one  hun- 
dred pieces  of  gold  in  an  incubator  for  Smith.  The 
latter,  not  knowing  anything  about  the  fact,  left  the 
deposit  in  said  incubator,  where  it  laid  one 
hundred  years.  The  gold  continued  to  bring  forth 
two  broods  of  interest  annually,  and  when  Smith's 


116 


Interest  Delimon. 


lieir^  found  it  out,  tlieir  portion  of  chicks  amounted 
to  ninety  six  thousand.  Each  original  piece  had 
multiplied  nine  thousand  six  hundred  times  at  a 
very  low  rate  of  increase,"  says  the  historian. 

This  story  was  told,  published  and  believed  at  a 
time  when  the  colonists  boasted  of  high  civilization 
and  when,  probably,  not  a  dust  remained  of  the 
original  deposit.  Yet  the  colonists  continued  to 
pay  tribute  on  them  to  Smith's  descendents,  as  the 
man  who  continues  to  pay  taxes  on  land  which  has 
been  long  since  washed  away  by  the  river. 

Here  is  another  story  in  this  very  morning's 
papers  : 

Ten  men  formed  an  association  and  agreed  to 
pool  ten  dollars  a  week  and  loan  it  out,  It  is  now 
a  regularly  chartered  incubator  "  with  $36,000  in 
the  boxes. 

This  wonderful  growth,  the  papers  present,  as 

an  instance  of  what  can  be  done  with  energy  and 
perseverance  in  the  way  of  accumulating  wealth  !" 

Meantime  a  great  man  is  round  making  speeches 
and  telling  mortgaged  farmers  that  they  are  like 
the  frog  in  the  well,  climbing  out  two  feet  in  the 
day  and  falling  back  (in  debt)  three  feet  at  night. 

Behold  the  ditference  between  those  who  receive 
and  those  who  pay  interest. 

The  most  effective,  however,  of  all  these  interest 
stories,  and  the  one  which  was  made  the  foundation 


Age  of  I}i('i(h((t(>rs. 


m 


of  all  arguments  to  convince  the  colonists  of  the 
benefits  to  be  dei-ived  from  incubators,  and  induce 
them  to  invest  in  tliem,  was  the  following  : 

During  a  protracted  wai*  in  Germany-  a  noble- 
man intrusted  a  large  amount  of  gold  in  the  care 
of  a  Jew,  (Rothchild).  The  Jew  forthwith  placed 
it  in  incubators.  It  multiplied  to  such  an  extent 
that,  at  the  end  of  the  war,  the  Jew  was  able  to 
give  back  to  the  nobleman  his  gold  with  an  increase, 
and  yet  retain  enough  of  the  brood  to  make  him- 
self immensely  rich." 

Such  stories  were  told  with  an  air  of  innocence, 
as  if  the  outcome  were  blessings  from  Heaven,  in- 
stead of  extortions  from  the  victims,  and  no  one 
seemed  conscious  of  the  wrong  involved  in  the 
fals  hood. 

THE  AGE  OF  INCUBATORS. 

We  come  now  to  a  culminating  point  in  the 
financial  history  of  the  colony,  since  the  passage  of 
that  terrible  legal  tender  decree.  This  period  may 
properly  be  named  the  Age  of  Incubators."  The 
position  of  ease,  affluence  and  power  acquired  by 
the  Adventurers  through  loans  ;  the  wonderful 
stories  which  passed  current  about  the  growth  of 
money,  when  passed  through  incubators,  and  the 
fact  that  no  other  enterpi*ise  guaranteed  as  large 
profits  as  money  loaning,  made  the  whole  colony 


118 


Age  of  Incuhators. 


teem  with  incubators.  Every  town,  however  small, 
had  at  least  one,  and  hirge  cities  had  hundreds. 

Money  to  k)an,'^  was  placarded  at  every  corner 
and  advertised  in  all  the  newspapers.  Even  char- 
itable Christian  institutions  made  usur}^  the  foun- 
dation for  their  support.  They,  like  Adventurers, 
invested  wliat  donations  and  legacies  thc}^  received 
on  mortgages,  and  thus  extracted  from  the  alread}^ 
overtasked  toilers  the  means  for  their  charities. 

Among  the  schemes  and  devices  for  multiplying 
loans  and  extracting  interest,  one  deserves  especial 
consideration,  as  being  a  late  invention  in  the  col- 
ony, aial  bearing  the  special  protection  of  the 
Grovernor  for  its  (supposed)  benevolent  object.  This 
is  the 

BUILDING  AND  LOAN  INCUBATOR. 

One  day,  as  we  were  pondering  over  the  wonder- 
ful changes,  financially,  socially  and  mentall}^, 
which  took  place  in  our  days  in  the  colon}' ,  a  stranger 
accosted  us,  and  do  you  wish  to  get  rich  ?"  he 
asked.  Of  course,"  we  replied,  everybody  de- 
sires to  get  rich."  We  have  just  started  a  new 
mone}^  incubator,"  he  said.  It  beats  all  others 
for  i-apidity  of  reproduction.  It  has  caused  a  per- 
fect revolution.  Ever}^  person  who  can  spare  a  little 
money,  puts  it  right  into  it.  It  is  called  the 
'  Building  and  Loan  Incubator.'    It  has  gained  the 


Ihiildiiuj  IiK'iflxtfors. 


119 


favor  of  all  tlie  authorities  in  tbecoloii}^  on  account 
of  its  great  benefits,  and  already  it  is  su[)ei'e(M]ing 
all  otliers,"'  be  went  on.  "  How  does  it  work 
inquired.  ''You  put  a  piece  of  gold,  or  paper  repiu^- 
sentative,  in  the  boxes  ever}^  month,  and,  without 
any  other  trouble  on  your  part,  it  will  double  itself 
in  on^>  hundred  months.  The  lik(^.  of  \i  never  was 
heard  of  before.  We  are  all  going  to  get  rich  from 
Adventurers  to  poor  mechanics,  who  have  but  ten 
dollars  a  week  wages,"  he  replied. 

We  became  somewhat  anxious  to  leai-n  more 
about  this  new  scheme,  especially  as  the  man  who 
was  soliciting  us  did  not  look  like  an  Adventurer. 
He  explained  to  us  the  working  of  this  new  ma- 
chine. "  Say,  one  thousand  of  you  form  an  associ 
ation  and  deposit  with  me  (the  man)  each  one 
dollar  ever}^  month.  I  take  the  thousand  dollars 
and  lend  them  to  one  of  you,  who  is  fortunate  to 
own  a  lot  worth  one  thousand  dollars  to  secure  the 
loan,  and  is  anxious  to  build  a  house  on  it.  The 
next  thousand  to  another,  and  so  on  to  the  end  of 
the  100  months.  We  are  now  divided  into  two 
classes,  viz  :  investors,  who  continue  to  pay  one 
dollar  per  month  on  each  share,  but  do  not 
borrow,  and  "  borrowers."  Those  who  borrow  will 
have  to  keep  up  their  shares  of  one  dollar  on  each 
$200  borrowed,  and,  at  the  same  time  return  one 
per  cent  of  the  borrowed  principal  monthly.  Thus, 


120 


Build ing  Incubators. 


if  a  partner  borrows  $1000,  he  will  have  to  carr}^ 
five  shares  and  pay  five  dollars  on  the  same,  also 
ten  dollars  on  the  loan,  making  fifteen  dollars, 
monthly.  At  the  end  ot  one  hnndred  months,  on 
five  shares  they  will  have  paid 

Investor  on  shares  S    500  00 

Borrower  on  shares,  and  loan   1500  00 


Total  received  by  me    $  2000  00 

I  then  divide  these  S2000  into  two  equal  parts, 
giving  ea(;h  partner  SIOOO.  But  the  borrower,  as 
you  know,  has  received  his  thousand  at  the  begin- 
ning of  the  period.  So  his  debt  is  paid.  The 
investor  gets  his  thousand  now.''  Right  here  we 
a  sked  the  man  who  paid  him  for  his  time  and  trouble. 
He  said  the  fines  and  penalties  would  be  sufficient 
to  compensate  him  and  cover  all  expenses  of  man- 
agement." What  '  fines  '  and  '  penalties  ?'  "  we 
asked.  He  said  that  it  was  one  of  his  rules,  if  a 
partner  did  not  come  up  punctually  with  his  dues 
at  the  appointed  time,  he  would  fine  him  ten  cents 
on  every  dollar,"  and  added  that  his  experience 
in  the  business  had  proven  that  such  fines  amounted 
to  a  considerable  sum."  Besides,"  he  continued, 
salary  is  but  a  secondary  object  to  me.  I  got  up 
this  scheme  purely  for  the  benefit  of  workingmen 
and  persons  of  small  means,  to  induce  them  to  save 
their  money.    I  desii-e  to  see  such  persons  installed 


Build in(i  [HeHh((fors. 


121 


in  a  home  of  tlieir  own  and  cease  paying- i*(^iit  to 
Adventurers.  Our  sclienie  is  a  mutual  affair.  It 
lifts  workingnu^n  into  tlie  position  of  money-lend- 
ers and  enables  them  to  borrow  from  tlu^nselves  at 
a  very  low  rate  of  interest.  In  it  the  bori'ower 
])ays  6  per  cent  per  annum,  while  the  lender  gets 
24  per  cent,  or  four  times  as  much  as  the  borrower 
pays." 

Here  the  man  got  warmed  up,  almost  excited. 
He  pulled  a  pamphlet  out  of  his  })ocket,  and  opening 
it,  he  showed  jus  by  actual  figures  that  a  mem- 
der  of  his  association  could  be  l)oth  lender  and  bor- 
row^ei-,  at  the  same  time,  pay  only  G  per  cent  as 
borrow^ei-,  receive  24  per  cent  as  lender,  on  his  own 
nu)ne3^,  and  at  the  end  of  100  months  come  out,  not 
only  clear  of  debt,  but  with  a  large  sum  of  moue3\ 
besides  a  home  of  his  own.  How  can  this  be 
possible?"  we  asked.  '*  It  comes  from  the  wonder- 
ful mechanism  of  our  new^  incubator."  he  answered. 

Count  for  youi-self,"  he  continued,  ^'  and  you  will 
be  satisfied  that  it  does  perform  such  feats."  Here 
he  drew^  out  pencil  and  paper  and  pi'oceeded  to 
figuring,  wdiile  w(^  looked  on.  The  borrower  gets 
$1000  foi'  100  months,  which  is  8  years  and  4 
months.  He  pays  us  $15  })er  month,  or  100  times 
15,  equal  to  $1500  during  the  whole  time,  that  is,  he 
returns  to  us  the  $1000  borrowed  and  $500  more  as 
interest.       Then  calculate,"  said  the  man,  $500 


122 


B u ild imj  In cn h ators. 


as  interest  on  $1000  dui-ing  100  months,  or  8J  years, 
is  exactly  6  per  cent  per  annum,  and  no  more. 
Any  tyro  in  arithmetic  can  calculate  that,"  he  said, 
with  a  triumphant  air.  IS'ow  come  to  the  inves- 
tor side,"  he  went  on,  and  calculate.  He  paid  us 
$5  per  month  during  100  months,  making  a  total  of 
$500  and  no  more.  He  paid  us  the  first  $5  at  the 
beginning,  and  the  last  $5  at  the  end  of  the  100 
months,  so  that  he  was  out  of  his  $500  only  an  av- 
erage of  fifty  months,  or  4  years  and  two  months. 
Xow  we  pay  him  $1000,  $500  of  which  is  interest 
on  his  $500  for  fifty  months,  equal  to  24  per  cent 
annually."  ^'  Is  this  not  correct,"  he  said.  We  had 
to  admit  that  it  was,  as  per  figures.  ^'  Then  is  not 
this  new  incubator  the  most  perfect  machine  that 
ever  was  invented  for  the  hatching  of  interest?"  he 
asked  again,  and  concluded  by  asserting  that 
everybody  who  would  invest  in  it  was  bound  to  get 
rich,  whether  he  was  borrower,  lender  or  both,  be- 
cause all  participated  alike  in  the  wonderful  in- 
crease. 

We  were  perfectly  astounded,  and  told  the  man 
that,  if  he  would  leave  us  a  copy  of  his  prospectus, 
we  would  examine  the  mechanism  of  his  incubator. 
This  he  did,  and  we  examined  it  and  soon  discov- 
ered the  trick.  The  associates,  as  the  man  had 
said,  are  divided  into  two  classes,  lenders  and  bor- 
rowers, and  it  is  true  that,  if  all  things  go  right, 


the  lender  would  ^et  24  j)er  cent  per  aiiiuini  on  liis 
investment.  But,  leaving  aside  the  a])surdity  tliat 
his  incubator,  b}^  any  adjustnient  of  parts,  could 
have  any  power  of  bringing  forth  broods  of  money, 
it  is  not  true  that  the  borrower  pays  only  6  percent 
interest  per  annum.  Aside  from  fines,  penalties 
and  other  incidental  expenses  of  abstract  on  his 
lot  and  law^^er's  fee,  he  pays  18  per  cent  per  annum 
on  his  loan.  The  man  calculated  that  the  borrower 
held  the  $1000  one  hundred  montlis.  It  is  not  so. 
$15  of  it  he  returns  the  ver}^  next  month,  and  $15 
ever}^  following  month.  At  the  end  of  66f  months, 
he  has  paid  back  the  whole  thousand.  Now,  avei'- 
aging  the  time  he  held  the  loan,  (as  the  man  does 
that  of  the  investor),  at  half  tinu%  viz:  from  the 
time  he  paid  the  first  $15  and  the  last  $15,  66f 
months,  it  results  that  he  held  the  loan  oul}'  334 
months,  not  100  months.  Only  ^  the  time.  8o  lie 
virtually  pays  6  per  cent  for  only  one  third  the  time, 
e(pial  to  18  per  cent  annually.  A  tyvo  in  arith- 
metic can  count  that,''  as  the  man  had  said. 

Xow  a:*  to  the  charitable  philanthropist,  who  got 
up  the  :  cheme  for  the  benefit  of  wM)rkingmen,  as 
stated,  he  really  gets  18  per  cent  interest  on  $1000, 
but,  in  the  settlement  with  the  investor,  he  pays 
24  per  cent  on  only  S500.  If  he  received  18  per  cent 
interest  on  $500,  and  p^iid  24  per  cent  on  the  same 
sum,  he  would  be  losing  G  percent  on  the  transac- 


124 


B u ilding  Incubators. 


tloii,  but  getting  18  per  cent  on  a  $1000,  (which  is 
equal  to  36  per  cent  on  $500),  and  paying  24  per 
cent  on  the  $500,  lie  realizes  12  per  cent  pi'ofit. 
Besides  this  profit,  fines  and  penalties,  he  reaps  an 
immense  harvest  of  interest  by  re-loaning  the  in- 
stallments as  they  come  in  monthly,  at  compound 
18  per  cent  interest,  by  which  process  the  original 
$1000,  which  came  all  back  in  66f  months  and  was 
re-loaned,  amounts,  at  the  end  of  that  period,  to 
$1710,  and  at  the  end  of  the  hundred  months  to 
$34e32.  If  the  borrower  of  the  original  $1000  had 
re-borrowed  each  $15  he  paid  in  monthly,  at  the 
same  rate  of  interest,  at  the  expiration  of  the  hun- 
dred months,  he  would  have  paid  $3432,  or  $2432 
for  the  use  of  one  thousand  eight  years  and  four 
months,  and  receive  no  interest  whatever  on  his  lot. 
Besides  the  income  of  $3432  that  the  man  realizes 
on  the  thousand,  on  $15  per  month,  he  also  realizes 
the  third  of  it  on  the  five  dollars  monthl}'  of  the 
investor,  making  his  receipts  in  all : 


Out  of  which  he  lent  $1000  at  the  beginning  and 
pa^^s  one  thousand  at  the  end,  leaving  him  $2576. 

No  wonder  Adventurers  were  adopting  the  new 
incubator,  both  as  the  best  means  for  collecting  what 


On  borrower.. 
On  investor  ^ 


$  3432  00 
1144  00 


Total 


$  4576  00 


liiiilduu/  luctihdforx. 


125 


dribs  of  golU  had  strayed  from  ihc  bank  in  wagrs. 
and  at  the  same  time  obtain  the  liioliest  possible 
i*ate  oi'  intei-est  on  their  fnnds. 

Upon  investigation,  we  fonnd  that  t(Mi  in  one 
luindred,  who  went  into  the  assoeiation,  evei*  con- 
tinned  to  the  end  of  the  one  Imndred  nn)nths. 
Most  of  them  withdrew  from  it  the  hrst  or  seeond 
year.  Also  that  most  of  the  borrowers  lost  tlie 
house  they  built,  and  the  lot  on  whieli  they  built  it, 
and  these  losses  oceurred  mainly  after  they  had  re- 
turned all  the  borrowed  mone}^  Fiiuilly  we  found 
that  the  ver^^  few  wlio  continued  to  pay  monthly  to 
the  end  were  Adventurers  or  money  lenders. 

So  we  deplored  the  poor  benighted  colonists,  who 
fell  victims  to  the  new  trap,  but  were  powerless  to 
prevent  them  going  in  it.  The  intense  desir(^  of 
fathers,  and  still  more  of  mothei-s.  to  reach  a  home 
they  could  call  their  own,  undisturbed  b3  landlords, 
coupled  with  the  [)rospect  of  getting  rich  without 
labor,  and  the  dense  cloud  which  obscui'cd  the 
truth  in  reference  to  money  matters,  were  more 
powerful  than  all  the  logic  that  one  could  bi'ing 
against  the  Building  and  Loan  Incubators. 

From  these  pestilential  incubators  issued  a  mias- 
matic flight  of  birds  of  ill  omen,  interest  drawing 
notes,  bonds,  securities,  annuities,  p(M'petuiti(\s  and 
mortgages,  until  the  social  atmosphere  was  dense 
and  dark  with  them.    They  acted  upon  the  indus- 


Bn  ildi  >/  //  In  c  n  ha  tors . 


tries  of  the  coloii}^  like  an  enormous  flock  of  vam- 
pires, absoi-bing  tlie  life  blood  of  all.  Farms  which 
could  have  been  made  Gardens  of  Eden,"  if  their 
})roducts  could  have  been  invested  in  improvements 
upon  the  same,  were  foi-ced  to  retrogress  towards 
the  original  wilderness,  by  the  absorptions  of  inter- 
est. Manufacturers,  which  could  have  flooded  the 
colony  with  tlie  comforts,  conveniencies  and  luxu- 
ries of  civilization,  were  languishing  and  perishing 
under  the  same  scouige.  Commerce,  which  could 
have  floated  the  produ(^ts  of  farm  and  factory  to 
every  hamlet  in  the  land,  was  stagnant,  pai*alized 
by  the  drriinage  of  discounts. 

The  merchant  marine  of  the  colony  was  driven 
entirely  from  the  ocean,  and  many  of  the  industries 
had  already  passed,  with  the  marine,  intothehands 
of  foreign  nations,  of  cheaper  money  and  lower 
interest.  Eveiywhere  and  every  move  was  feeling 
the  pressure  of  interest.  What  little  money  came 
out  could  no  longer  circulate  in  the  channels  of 
industi-y  and  commerce.  The  centripital  force  of 
interest  was  drawing  it  constantly  to  the  centers. 
From  such  centers  it  could  only  be  dislodged  by 
the  execution  of  new  interest  drawing  uotes  and 
mortgages.  It  was  officially  computed  that  ever}' 
dollar  of  money  extant  had  in  existence  a  progeny 
of  fifty  interest  drawing  obligations,  the  annual 
tribute  on  which  was  twice  as  large  as  the  whole 


Jiuildliu/  IiH'iihfdors. 


127 


aiiioinit  of  in()iu\v  in  the  colon}'.  Tluis  the  colo- 
nists wei'c  involved  in  a  tc^'rible  nion(4ai'y  whirl- 
pool.  Tiie  increase  of  notes  raised  the  stream  of 
interest,  an.d  the  swelling'  of  this  sti'(n\ni  wiis  I'ais- 
ing  still  higher  the  stream  of  notes.  Ea(*h  of  these 
streams  was  both  cause  and  effect  ii})on  the  (^ther. 
and  their  ever  increasing  voluiue  and  force  w^as 
scattering  dismay  am^Mig  the  industries,  threaten- 
ing to  ingulf  them  all. 

Yet  the  universal  cr}'  of  the  sufferers  was  for 
''  more  money,"  which  as  the  machinery  was  work- 
ing, w^ould  raise  still  higher  the  destructive  streams 
of  loans,  notes,  interest,  mortgages  and  foreclosures, 
cause  greater  pressure  and  quicker  ruin.  Wolves, 
from  the  legal  tender  den,  were  ravaging  the  colon3\ 
and  the  colonists  were  clamoring  for  more  wolves. 
The  Governor's  decree  had  turned  the  monetary 
system  into  predatory  l)easts.  What  was  needed 
was  not  to  increase  the  number  of  these  beasts,  but 
to  change  their  nature  or  destroy  them  altogether, 
and  fill  their  place  with  useful  domestic  animals. 
What  was  needed  was  to  turn  the  system  into  what 
it  pretended  to  be,  a  ^'  means  of  exchange,''  in- 
stead of,  as  it  was,  a  medium  of  loans  and  instru- 
ment of  bondage. 

All  reasoning  with  the  Adventurers  and  incubator 
men,  in  reference  to  lending  at  interest,  showing- 
how  it  was  contrary  to  religious  principles,  how  it 


128 


JJn ildiuf}  Tncuhaiors. 


was  destro^^ing  the  energy  and  liberties  of  the  pro- 
ducing classes,  and  at  the  same  time  demoralizing 
the  recipients,  proved  unavailable.  Their  very 
temper,  however,  indicated  a  consciousness  of  being- 
wrong  The  kindest  expressions  were  instantly 
met  by  the  brusque  questions,  shall  not  a  man 
have  the  right  to  do  what  he  pleases  with  his 
pro|)erty  ?  Shall  he  not  have  the  privilege  of  in- 
vesting his  means  to  the  best  advantage  ?  Shall  he 
not  have  the  right  to  bequeath  such  rights  to  whom 
he  chooses?''  Then  add  :  ''The  people  are  not 
obliged  to  borrow."  To  all  these  questions  we  did 
not  hesitate  to  answer  yes,'*  provided  by  so  doing 
a  man  does  not  encroach  upon  the  rights  of  his 
fellow  beings.  AVe  did  not  believe  that  a  man 
liad  any  more  right  to  rob,  oppress  and  enslave 
another  by  deception  than  ph^'sical  force."  Gov- 
,ernments  profess  to  be  established  for  the  protection 
of  the  weak  against  the  strong.  Such  protection 
should  apply  more  especially  to  ^'  mental  force," 
because  such  force  is  far  more  potent  for  evil,  as 
well  as  for  good,  than  -'physical."  "  Again,"  we 
continued,  ''  those  who  bear  the  burden  of  interest 
are  more  numerous  than  those  who  receive  it.  They 
should  be  objects  of  solicitude  and  entitled  to  the 
same  degree  of  elevation  and  enjoyment  that 
money  lender^  obtain.  Besides,  there  is  danger 
ahead,  we  said,  if  we  continue  this  oppression. 


Money  Ijnding. 


]\Iark  tliat  the  oppressed  nuiltitude  have  within 
their  own  i-anks  the  })liysieal  and  mental  power  to 
turn  ()p})i'ession  against  the  oppressors.  They  are 
becoming  conscious  of  tliis,  and  restless.  Tliey  did 
so  once  in  France  against  political  op})ressi(>n. 
The}^  may  be  sk)wer  in  the  case  of  financial  o]) 
pression,  under  tlie  impression  that,  to  go  in  debt 
and  lose  property,  is  a  voluntary  act  of  their  own; 
but,  when  they  come  to  comprehend  that  it  is  not 
so;  that  the  condition  for  borrowing  money  is  made 
com])uls()ry  by  a  barbarous  law,  tliey  may  change 
opinion.  In  tliat  case,  it  they  do  not  uprise  and 
overtlirow'  such  law,  they  may,  at  least,  cease  lend- 
ing their  physical  support  in  enforcing  it. 

But.  waving  all  such  dangers,  which  we  earnestly 
desire  to  avert,  we  do  not  concern  ourselves,  we 
added,  about  the  I'ight  of  individuals  to  loan  money 
at  interest,  or  do  what  they  please  with  their  pro})- 
erty.  We  claim  such  rights  ourselves  and  there- 
fore must  grant  them  to  others.  Our  concern  is  for 
the  poor  beings  wdio  are  pressed  to  borrow^  and  pay 
that  interest.  They  are  the  ones  we  wash  to  liber- 
ate from  thrakhmi,  and  do  it,  if  possible,  without 
detracting  one  single  comfort  from  the  recipients  of 
interest."  Here  came  to  our  mind  the  first  in- 
stance, in  our  ti'avels  over  the  earth,  wdien  we  were 
forcibly  sti'uck  by  the  injustice  of  slavery,  wdiich 
we  relat(Hl.       A  stout  negro  man  was  heli)ing  us 


130 


Money  Lending. 


plant  a  vineyard,  and  every  Satnrday  evening  a 
fat,  lazy  woman  came  to  draw  liis  wages,  not  leav- 
ing the  poor  man  as  much  as  one  dime  to  treat  liis 
children  to  candy.  He  and  his  children  belonged," 
(horrible  expression),  to  that  lazy  woman,  and  slie 
was  morally  unconscious  of  wrong  in  collecting 
and  appropriating  the  poor  man's  wages.''  Then 
getting  somewhat  excited,  we  proceeded.  Finan- 
cial bondage  is  far  worse  than  personal 
slavery.  The  money  lender  has  no  personal  at- 
tachment to,  nor  sympathy  for,  his  debtor.  He 
can  coolly  turn  him,  and  helpless  family,  out  of 
liome  penniless,  and  feel  perfectly  callous  about  their 
sufferings.  Slaves  feared  no  such  treatment.  After 
all,  they  had  a  friend  in  their  master.  They  were 
part  and  parcel  of  liis  }iousehold.  Yet  the  days  of 
slavery  are  numbered.  It  is  doomed  to  be  wiped 
out  from  the  face  of  the  world.  But  here  exists  a 
relation  between  man  and  man,  which  is  worse  in 
its  effects  than  slavery.  It  should  be  the  object  of 
legislators  and  good  governments,  religion,  the 
moralist,  the  ultimate  result  of  scientific  discove- 
ries and  mechanical  inventions,  the  aspiration  of 
every  intelligent  being,  the  acme  of  civilization  to 
establish  on  earth  perfect  liberty,  political  and 
financial.  Earthly  happiness  can  never  reach  its 
possibility  without  it,  and  such  liberty  will  never 
reign  supreme,  as  long  as  there  remains  a  vestige  of 


Bad  Social  h*('/ati<nis. 


such  social  relations  as  king  and  subjects,  patricians 
and  plebeians,  lords  and  serfs,  masters  and  slaves, 
landlords  and  tenants,  employers  and  employes, 
creditors  and  debtors.  These  relations  are  synomy- 
mous  and  difier  in  degrees  only.  Every  one  of 
them  is  antagonistic  to  liberty  and  happiness  ; 
therefore  should  be  abolished  as  rapidly  as  practi- 
cable, without  cansing  too  great  a  shock.  We  be- 
lieve that  all  parties  will  gain  by  tlie  change. 


THE  FRUIT  POINTS  THE  TREE. 


Institutions  of  men  can  only  be  judged  by  tlie 
fruit  they  bear.  Let  us  apply  this  rule  to  the 
monetary  system  of  the  colony.  We  give  here  the 
condition  of  things  in  the  best^  largest  and  richest 
city  in  the  colony^  as  reported  by  an  association 
whose  object  was  the  promotion  of  morality/'  and 
not  to  cast  blame  upon  the  monetary  system.  We 
quote  from  a  very  reliable  paper. 

THE  LABORERS  HOUSES  IN  THE  CITY." 

"  Some  startling  and  painful  facts  were  brought 
to  light  at  a  conference  of  the  societies  for  the 
promotion  of  morality  held  in  the  city  this  month. 
In  a  paper  read  on  the  "housing  of  the  poor  in  the 
city/'  it  was  stated  that  the  half  of  the  dwellings 
consist  of  one  room  to  which,  in  some  instances,  is 
added  a  cup-board.  In  one  of  these  rooms  are 
often  found  sleeping  from  ten  to  fifteen  persons, 
old  and  young.  One  hundred  thousand  persons 
and  more  sleep  in  cellars  and  attics.  The  prices 
for  room  are  high,  and  one  consequence  of  this  is, 

(132) 


I  that  very  inaii}^  thousaiuls  of  abandoned  wonuMi 
I  in  the  eity  are  i*eceived  into  families  as  h)do;ers,  witli 
a  view  to  lessening  the  rental.  They  are  the  ladies 
of  the  honse,  and  l)()th  {)arents  and  ehildi-cMi,  at 
lirst,  shun  tliem.  But  the  latter,  seeing  the  idle 
life  these  city  lodgers  live,  and  the  beautiful  clothes 
they  wear,  soon  learn  to  entei^  in  the  same  awful 
course." 

Such  is  the  result  of  tliis  monetary  systeuK 
A  thousand  3^  ears  under  this  system,  with 
thousands  of  mechanics  seeking  employ nuMit  eveiw 
year,  with  rock,  clay,  sand,  lumber  and  iron  in 
abundance  all  around  us,  will  not  allow  us  to  build 
decent  houses  for  our  inhabitants;  while  a  few 
years  under  a  rational  system  would  place  ever}^ 
family  in  a  palace. 

Alas,  that  an  element  which  is  not  necessary  to 
and  does  not  enter  as  a  component  part  of  man's 
dwelling,  should  be  considered  the  only  essential 
element  in  the  construction  of  the  same,  and  that 
its  absence  should  force  thousands  of  human  beings 
to  huddle  in  tenement  houses  as  brutes  !  The  city 
described  in  the  report  of  the  above  association  is 
no  exception  to  all  other  cities  in  the  colony  ;  and 
wherever  the  same  monetary  system  has  been  in 
operation  in  the  world.  The  poor,  in  all,  are  in  the 
same  deplorable  condition.  These  cities  may  all 
be  properly  defined  as  ''guilded  rin\s  of  opulence. 


134 


Ti((ra(/('s  of  In' crest. 


surrounding  an  abyss  of  misery,  into  which  the 
children  of  the  wealthy  are  constantly  dropping." 

While  we  were  reading  the  above  report  to  a 
clustei*  of  fi'iends,  and  deploring  the  facts,  one  of 
these  friends,  a  Frenchman,  remarked  that  mill- 
ions of  workmen  in  his  country  had  been,  genera- 
tion after  generation,  living  in  narrow,  uncomforta- 
able,  windowless  adobe  shanties,  and  not  a  thing 
have  the  successive  Governors  of  that  country  done, 
or  as  much  as  proposed  doing,  to  improve  the 
dwellings  of  the  poor,"  Instead,"  he  added, 
our  Rulers  have  wasted  time  and  means  in  mili- 
tary flummeries,  vain  display,  and  dissipation. 
Meantime  our  Adventurers  (and  France  has  not 
been  spared  by  that  class),  have  ever  been  busy 
devising  schemes,  by  which  they  could  cast  the  gold 
hook  and  draw  in  the  products  of  labor;  wdiile  our 
benighted  people  stood  ready,  mouth  ajar,  looking 
for  the  gold  hook  to  catch  the  enticing  bait.  "And 
now  that  France  is  basking  in  an  atmosphere  of 
political  liberty,"  he  continued,  "our  leaders  care 
nothing  about  ^  houseing  the  poor,'  but  calculate, 
with  Adventurers,  the  amount  of  gold  or  notes 
(not  of  men  and  materials),  necessar}^  to  bridge  the 
Straight  between  France  and  England,  and  what 
'  revenue  '  the  bridge  would  bring  to  them. 

Alwa3^s  scheming  to  draw  '  revenues  '  from,  never 
to  advance  the  welfare  of  the  people  at  large. 


Racitycs  of  Liici'csl. 


OPINION  OF  AN  ai)Vp:ntijhj:k  as  to  the  vvokking 

CLASSES. 

We  had  ii  conversation  witli  a  jxM'sonal  friend, 
wlio  belonged  to  tlie  capitalistic  side,  (at  this  time 
the  colonists  were  alread}^  divided  into  two  classes, 
viz  :  Capital  and  Labor,  and  the  line  was  drawing- 
tighter  every  day).  We  had  a  conversation,  we 
said,  about  the  condition  of  the  working  classes, 
asking  whether  he  did  not  believe  tliat  something 
should  be  done  to  better  that  condition  and  thus 
avert  possible  future  trouble.  It  would  be  a  grand 
and  benevolent  act,  but  it  is  an  impossibility,"  lu^ 
answered.  You  see,"  he  added,  "  machiner}^  is 
the  speediest  and  cheapest  worker  we  have.  It 
needs  no  rest,  feeds  on  coal  and  wood,  drinks  only 
water,  and  requires  but  a  few  hands  to  tend  to  it. 
and  these  mostly  women  and  children,  who  woi-k 
for  lower  wages  than  experts.  The  balance  of  the 
laboring  classes  we  have  no  use  for.  We  do  not 
want  to  fill  our  houses  to  overflowing  with  furni- 
ture, clothes,  food,  or  any  other  commodity  of 
which  we  cannot  make  use.  Consequently  when 
the  demand  for  goods  cease,  we  are  bound  to  stop 
production,  and,  of  course,  tui'n  the  workers  out  of 
employment.  This  is  what  makes  so  many  tramps 
in  the  colony.  We  regi*et  it,  but  cannot  prevent  it. 
It  comes  in  the  nature  of  things  as  society  ])r()- 


136 


Jx((ra(/('>!  of  Interest. 


gresses  and  mechanical  inventions  are  made.''  ^'Of 
course,"  he  continued,  these  tramps  get  hungr}^, 
and  hungry  men  become  unruly  and  even  danger- 
ous to  the  better  portion  of  society.  Some  of  them 
ha  ve  alread}^  become  so  bold  as  to  parade  the  streets 
of  our  large  cities,  bearing  flags  with  ominous  and 
threatening  inscriptions,  and  clamoring  for  '  work 
or  bread,'  calling  oui*  good  Governor  himself  hard 
names,  as  if  he  w^ere  the  cause  of  poverty.  What 
has  our  Governor  to  do-w^ith  inventions,  overpro- 
<luction,  work  or  wages?  He  cannot  compel  people 
to  buy  beyond  their  wants,  nor  can  he  compel  Ad- 
venturers to  employ  labor  at  a  loss.  This  is  the 
land  of  liberty,  where  everybody  does  as  he  or  she 
chooses.  We  pity  these  tramps,  but  their  case  is 
beyond  redemption.  We  wish  them  no  harm,  3^et 
we  must  caution  them  that  it  will  be  better  for 
them  if  they  do  not  interfere  with  the  law^s  of  the 
colony,  else  they  will  be  made  food  for  powder  and 
lead."  I  tell  you  friend,"  he  went  on,  the  only 
remedy  we  can  see  is  a  war  to  kill  out  the  surplus 
population.  In  a  war,  these  tramps  w^ould  be  des- 
patched quicker,  and  therefore  more  mercifully, 
than  by  the  slow  process  of  starvation." 

We  could  but  be  deeply  affected  b}^  such  views. 
Oh,  horror  of  horrors,  we  ejaculated  within  our- 
selves. Was  this  to  be  the  final  ending  of  inven- 
ti(ms.    It  cannot  be.    A  merciful  Creator  would 


Penrrsc  Doctrine. 


not  liave  endowed  man  with  genins  to  invent  liis 
own  destrnetion."  N^JVy,  on  the  contrary,  he  has 
endowed  evei'y  animal  with  more  or  less,  ])ut  man 
above  all,  witii  means  of  defense  and  pi-otection. 
Invention  cannot  be  bnt  one  of  these  means  to 
increase  production  and  meet  the  iiicrease  of  po})- 
ulation.  This  within  ourselves.  Then,  regaining 
composure  but,  sir/'  we  said  :  ^'  It  appears  to  us 
that  3^ou  have  not  the  right  conception  of  social 
affaii's.  We  i-emember  reading  a  book,  written  hy 
Malthus,  in  which  he  predicts  the  time  would  come 
on  earth,  when  '  population  would  tramp  npon  the 
heels  of  food.'  Malthus  means,  of  course,  a  tinu^ 
when  the  earth  wn)nld  not  produce  sufficiently  to 
maintain  its  dense  population,  and  advises  that, 
either  prudence  sliould  restrict  the  increase,  or 
when  that  fatal  day  should  come,  a  part  of  the 
population  would  liave  to  starve.  It  seems  to  us, 
sir,  that  yon  have  the  doctrine  of  Malthus  end  fore- 
most, viz  :  the  cause  for  the  effect.  You  argue  that 
men  should  be  killed,  not  because  of  a  scarcity  of 
food,  but,  on  the  contrai-y,  because  we  have  too 
much  of  everything  with  wliich  to  feed,  clothe  and 
house  them.  To  illusti-ate  :  would  it  not  be  horrible 
to  hear  of  a  father,  who  cherished  his  children  as 
long  as  he  had  to  struggle  hard  to  support  them, 
but  who,  the  numient  he  should  invent  a  machine, 
or  discover  some  method  with  which,  or  by  which 


138 


Perverse  Doctrine. 


lie  eould  produce  more  food  than  needed,  sluuild 
turn  to  killing  these  children,  lest  he  be  overstocked 
with  goods  himself?  And  would  it  not  be  as  hor- 
rible for  the  whole  colony  to  do  the  same  thing  ?  A 
bountiful  Creator  has  certainly  loaded  the  table 
abundantly  for  '  all  '  his  children  ;  a  stupid  Gov- 
ernor decrees,  that  none  shall  partake  of  God's 
bounties,  except  those  who  are  provided  with  legal 
tender  gold  spoons  and  forces  the  famished  multi- 
tude to  starve  in  sight  of  plenty,  ^^ow,  you  say, 
that  it  would  be  more  merciful  to  shoot  the  starv- 
ing ones'at  once  !  Allow  us  to  suggest,  that  it  would 
be  far  more  merciful  and  more  reasonable  to  repeal 
a  barbarous  legal  tender  gold  spoon  law,  and  let 
all  to  the  table  and  partake  to  the  extent  of  their 
contributions."  Thus  we  reasoned  the  matter  with 
our  friend.  With  what  result  he  did  not  express, 
but  he  left  in  a  very  thoughtful  mood.  Thus  we 
had  come  to  a  pass,  when,  to  talk  with  the  suffer- 
ing workers,  we  were  grieved  by  their  chronic  gold 
craze ;  to  talk  to  the  Governor,  we  could  not  make 
ourselves  understood,  and  to  talk  with  Adventur- 
ers, we  were  struck  with  horror  by  their  principles 
and  views  ;  while  all  around  us  we  would  hear  the 
benefits  of  gold  eulogized,  and  its  "  intrinsic 
power  to  develop  industry,  and  lift  the  human  race 
from  poverty  to  opulence,  exalted  to  the  skies. 
A  barbarous  decree  had   forced  production  and 


Perverse  I)(te1rine. 


139 


comnierce  to  pass  throiigli  tlie  needle's  eye  "  of  a 
seai'ce,  iiisiginficant  metal,  thus  fixing  the  limits  of 
progress  to  tlie  limits  of  that  metal,  then  ])oint  to 
gold  as  the  promoter  of  industry  and  commerce. 
As  well  nui}^  we,  by  law%  restrict  a  people  to  raise 
corn  with  no  other  implement  than  the  '  pick/  then, 
when  lumger  should  press  that  people  to  exert 
themselves  to  desperation  to  raise  corn  enough  to 
subsist,  eulogize  the  '  pick  '  as  the  instrument, 
"  by  excellence  for  raising  corn.  Paradoxical  as 
this  comparison  may  appear,  the  pick  would  hold 
the  supremacy  over  gold,  for  it  is,  at  least,  an  instru- 
ment on  the  line  of  the  desired  object,  while  gold 
is  of  no  utility  to  production  or  distribution,  has 
no  relation  whatever  to  man's  activity,  and  the 
infatuation  implanted  in  the  brain  of  man  by  the 
enforcing  act  of  legal  tender,  makes  it  the  heaviest 
impediment  to  that  activity. 


LABOR  MOVEMENT. 


The  downfall  of  the  working  classes  in  the  colony, 
the  robberies  to  which  they  had  been  subjected 
by  Adventurers,  nay,  even  by  the  Governor  him- 
self, especially  in  selling  them  into  bondage  for 
many  years,  coupled  with  the  despair  of  ever  seeing 
their  reason,  in  regard  to  gold,  restored,  had  so  fa- 
tigued and  depressed  our  mental  faculties,  that  we 
decided  to  retire  to  the  wilderness  for  a  few  years' 
rest.  Do  what  we  may,  however,  it  was  be^^ond 
our  power  to  separate  our  thoughts  altogether 
from  the  condition  of  affairs  in  the  colony. 

One  night,  as  we  lay  in  our  hammock,  in  tiie 
hunter's  cabin,  we  fell  to  dreaming,  and  in  our 
gloomy  imagination  we  saw  the  river,  which 
meanders  through  the  colony,  unusually  full.  Con- 
tinued rains,  it  appears,  had  raised  its  waters  over 
the  banks.  It  was  turbid,  yet  level  and  calm.  A 
white  man  stood  on  a  high  point  on  the  banks 
watching  drifts  and  logs  floating  down  the  stream. 
A  short  distance  below  him  a  group  of  negroes 
were  apparently  iiitent  on  the  same  sight.  Of  a 
sudden,  the  man  moved  down  to  the  negroes,  and 

(140) 


Labor  Morciiicni . 


141 


•'boys,"  we  seemed  to  hear  him  distinctly  say,  if 
you  catcli  those  logs,  I'll  give 3  011  th(3  half  of  them/' 
Then,  with  one  accord,  the  negroes  seemed  to  strij) 
off  theii'  clothes  and  swim  for  tlie  logs.  Such  was 
a  common  stor}^  we  had  often  heard  in  our  young 
da3^s,  and  which  came  upj)ermost  in  our  incoherent 
(]ream.  After  this  followed  a  new  panorama  on 
the  river.  The  negroes,  it  seenuMl,  had  been  su})- 
plinuMited  by  a  multitude  of  white  men  in  the 
chase  after  logs,  and  the  white  num,  who  fornu^rly 
had  given  the  negroes  employment,"  hati  been 
made  rich  b}^  his  portion  of  the  logs,  possessed 
pleasure  boats,  swift  yatchs  aiul  nmgnilicent  steam- 
ers, on  which  he  and  his  wer(^.  now  lioating  leisurely 
up  and  down  the  stream,  enjoying  th.e  balmy  aii* 
and  the  sight  of  his  thousands  ot  employes,  wdiile 
the  latter,  head  above  water,  were  struggling  to 
catch  logs,  no  longer  at  half,  but  whatever  the  boss 
choosed  to  allow  them.  Here  and  there  an  em- 
pkwe  would  give  way,  under  exhaustion,  and  sink. 
l)ut  it  created  no  alarm.  It  seemed  to  have  become 
a  usual  occurrence.  Again  we  dreamt  the  scene 
had  changed  once  more.  The  waters  on  the  river 
were  clearer  and  smoother  than  we  had  ever  seen 
tliem  before,  and  boats,  yatchs  and  steamers  beauti- 
fied the  landscape.  On  a  sudden  a  strange  pheiu)me- 
non  took  place  among  the  floating  heads  and 
waiving  arms.     It  seemed  as  if  a  whirlpool  had 


142 


Labor  Movement. 


engulfed  a  grou})  of  men.  We  saddened,  yet  could 
not  prevent  tliinking  that,  perhaps,  tlieir  condition 
in  a  future  life,  would  be  better  than  in  this,  seeing 
how  hard  tlieir  lot  had  been. 

Shortl^^,  at  no  great  distance  from  the  spot  where 
the  first  group  went  under,  w^e  caught  sight  of  sim- 
ilar accidents,  and  soon  whirlpool  followed  whirlpoo 
uiitil,  we  feared,  the  whole  host  of  floating  miserj^ 
w^as  about  being  swallowed  up  b^^  the  waters,  and 
thus  end  forever  the  nionetaiy  system  and  all  its 
victims  in  the  colony. 

AVe  awoke  hc^avy  headed  and  heavy  hearted,  but 
i-elieved  that  it  was  only  a  dream.  We  narrated 
our  dream  at  the  breakfast  board,  and  the  hunter's 
wife,  who  claimed  to  be  a  fortune  teller,  interpreted 
it  as  portending  trouble  in  the  colony.  We  pro- 
CiH^ded  hither  and  found  it  upheaved  with  Labor 
Organizations.'*  Almost  every  trade,  profession 
and  calling  had  formed  a  Union,"  or  Associa- 
tion," and  many  of  these  unions  had  already  enter- 
ed into  a  federation. 

What  does  all  this  mean  ?"  we  inquired.  We 
were  told  that  tlie  workers  had  organized  to  pro- 
t(^ct  their  interests  against  the  impositions  and 
exactions  of  the  capitalists,  (meaning  the  Adven- 
turers). 

What!"  we  exclaimed  in  fear,  are  we  alread}^ 
involved  in  a  revolution?"    ''Are  you  going  to 


Labor  Morctucnt . 


drown   tlie  labor  qiu^ntion   in   blood?"  we  asked. 

God  forbid.  There  is  no  ne(Ml  of  it.  and  bi'sidi^s, 
killing  the  Adventar«'rs  would  not  cure  the  gold 
lunacy,  and  consecjuently  would  not  better  the  con- 
dition of  the  working  clasHers.  On  the  othei*  side, 
if  we  could  cure  their  lunacy  and  clear  the  people's 
mind,  so  that  the}^  could  see  how  mere  gold  dust, 
no  matter  how  manufactured  or  coined,  has  not  the 
least  power  to  help  liuman  beings,  the  gohl  ti'ouble 
would  all  be  over,  and  the  Adventurers  could  no 
longer  do  any  harm.  Oh,  let  us  set  our  efforts  in 
the  right  direction  and  avert  a  useless  and  destruc 
tive  revolution,"  we  finished  by  entreating  them. 

N'aturall}^  we  became  very  anxious  to  learn  more 
about  this  ''Labor  Movement,"  as  it  was  now  called, 
and  repaired  to  an  intelligent  friend  of  ours,  who 
belonged  to  both  the  union  of  his  own  trade  and 
the  federation.  He  was  a  shoemaker.  "  What  is 
the  matter  with  the  working  classes  ?"  we  asked. 

Making  ready  to  fight  ?"  ''  No,"  he  replied.  We 
have  not  the  remotest  intention  of  fighting.  We 
have  organized  to  'protect'  our  interests."  ''  Against 
the  Governor's  legal  tender  decree?"  we  eagerly 
asked  again.  "  What  about  the  legal  tender  decree  ?" 
he.  questioned  "  We  have  nothing  to  complain 
about  legal  tender  money,  if  that  is  what  you 
mean.  We  only  want  enough  of  it.  We  do  not 
get  money  enough  in  our  wages,"  he  continued, 


144 


Labo)'  3I()V(>ment. 


that  is  what  liiirts  the  working  classes.  It  is 
'  competition  '  that  we  are  going  to  put  down.  We 
have  been  competing  witli  one  anotlier,  each  ott- 
ering to  work  cheaper  than  the  other,  until  our 
wages  are  so  low  tliat  we  can  hardl}^  keep  body 
and  soul  together.  We  cannot  furnish  our  families 
with  a  sufficienc}'  of  the  coarsest  food,  we  cannot 
clotlie  our  women  decently  to  appear  in  society, 
we  cannot  educate  our  childrei^,  noi*  afford  the 
commonest  comforts  and  pleasures  of  life,  although 
we  know  that  our  combined  labor  produces  the 
whole  of  these  comforts,"  and  he  went  on.  We 
resumed.  But,  we  hear  that  the  Adventurers  have 
also  organized  into  monopolies  and  trusts  to  stop 
competition.  If  so,  then,  to  all  appearances,  com- 
petition is  going  to  be  ground  between  the  two 
millstones  of  capital  and  labor.  Nay,  we  also 
heard  a  farmer  say  that  the  monster  evil,  which 
is  oppressing  the  colonists,  is  that  the  Adventurers 
are  destroying  competition,  and  that  they,  the 
farmers,  have  organized  to  have  competition  re- 
stored. Again,  it  is  said,  that  tarmeivs,  in  some 
parts  of  the  colony,  have  almost  compelled  the 
local  authorities  to  pass  laws,  forbidding  Advent u 
rers  to  combine  and  destroy  competition.  There 
must  be  some  misunderstanding  between  farmers 
and  mechanics  in  this  labor  movement.  Unless 
the  two  great  classes  of  producers  harmonize,  sue- 


Labor  Movement. 


145 


cess  will  be  impossil)le,"  w(.^  said.  That  is  so,'^ 
conceded  our  friend,  "but  Ave  do  agree  with  farm- 
ers that  Adventurers  hav(^  no  l  iglit  to  form  irnions 
and  put  down  competition,"  said  he.  "  Com})eti- 
tion  then,  \v(^  reasoned,  according  to  your  opinion > 
should  not  be  stopped,  but  only  driven  from  the 
ranks  of  labor  into  the  ranks  of  capitalists,"  and 
continuing  :  It  seems  to  us  ver}^  inconsistent  and 
unjust.  But  let  us  hear  how  you  ai'e  going  to 
drive  competition  from  among  shoemakers,"  we 
asked  him.  ''We  have  entered  into  a  mutual 
agreement  in  the  Union,"  he  answered,  that  none 
of  us  shall  work  at  less  than  a  certain  amount  of 
money  per  day."  "Suppose,"  we  querried,  "'that 
the  Adventurers  refuse  to  pa.y  you  the  rate  of 
wages  hxed  by  yourselves,  what  would  you  do 
about  it?"    ''Stop  working,  'strike,^"  he  replied. 

We  must  confess  that  wx^  cannot  see  how  you  will 
))e  able  to  obtain  more  money  either  by  merely  de- 
manding it,  or  by  stopping  work,"  we  said.  ''Con- 
sider that  adveiiturei's  ai-e  but  a  handful,  after  all  ; 
that  they  need  but  little  of  your  labor  for  them- 
selves, that  they  own  all  the  money  in  the  colony, 
except  a  few  scattered  pieces,  amounting  to  noth- 
ing, and  that  many,  very  many,  colonists,  go  now 
almost  barefoot,  because  they  are  unal)le  to  buy  shoes 
at  the  present  prices."  ''  Thus,  assuming  that  the 
Adventui'eis  grant  your  request,  they  alone  would 


146 


Labor  Jlocement. 


be  able  to  pay  the  enhanced  price  of  slioes,  and,  as 
we  said,  they  need  but  very  few  of  the  linest.  On 
the  other  side,  apart  from  the  man}^,  who  cannot 
buy  now,  many  more,  who  do  bu}^,  would  not  be 
able  to  go  higher,  and  hence  the  shoe  trade 
would  be  very  much  reduced.  So  we  think  that 
you  will  come  out  the  losei's  in  the  end,  instead  of 
gainers,  b}^  such  process.  When  the  amount  of 
money  is  about  fixed,  as  it  is  under  legal  tender 
gold,  the  higher^  is  the  price  of  commodities,  the 
lower  will  be  the  consumption,  and  consequently 
less  also  will  be  the  employment  of  labor.  Besides, 
suppose  that  other  trades  organize  also,  (wdiich 
they  will  be  compelled  to  do  when  one  trade  has 
organized),  to  have  their  wages  raised  in  money, 
would  not  that  fact  raise  the  price  of  the  articles 
they  make  also  ;  consequently  would  you  not  have 
to  '  pay  more  money  '  for  every  article  you  use  or 
consume,  except  shoes  ?  In  that  case  where  would 
your  gain  be  ?  Can  3^ou  not  see,  friend,  that  this 
'  higher  wages  '  affair  is  not  a  contest  against  "  com- 
petition,' as  3^ou  seem  to  think,  nor  against  Adven- 
turers, but  a  contest  in  the  labor  ranks,  among  the 
different  trades  themselves?  If  this  is  the  objec- 
tive point  of  all  this  labor  agitation  in  the  colony, 
instead  of  ameliorating  the  condition  of  the 
workers,  they  will  drive  one  another  speedily  into 
utter  ruin.    Again,  suppose  that  all  the  trades  ob- 


Ijihor  Movcmciii. 


147 


tain  more  iiioiicy  foi*  tlieir  work,  tliey  would  not 
better  their  eonditioii  one  whit  hy  it.  Let  us  illus- 
trate tliis  point.  For  the  sake  of  understanding, 
imagine  all  trades  were  working  for  one  partieular 
Adventurer  at  '  one  dollar  a  day,'  each.  At  the 
end  of  a  week  each  worker  would  have  '  six 
dollars  in  money.'  and  the  Adventurer  all  the 
product  of  their  work.  N^ow  the  Adventurer  is 
wise  enough  to  know  that  the  workers  cannot  live 
on  the  mone}^  they  got,  but  will  be  compelled  to 
cimie  to  him  and  purchase  back  the  pi'oducts  they 
have  parted  with.  Workmen  do  not  seem  to  see 
this  most  important  fact,  viz:  tliat  they  first  sell 
all  the  products  of  their  work  for  money,  then  are 
b^^  nature  forced  to  bu}^  those  same  products,  with 
that  same  money,  in  order  to  live.  When  the  Ad ven- 
tui'er  secui'e  the  pi'oducts  of  labor,  which  is  abso- 
luteh'  necessary  to  human  existence,  and  give  the 
producers  a  trifling  stulf  called  money,  which  is 
not  fit  to  support  life  one  instant,  he  well  knows 
that  he  has  these  produ(^ers  completeh^  under  sub- 
jection. He  never  will  surrunder  'all'  the  pro- 
ducts lie  has  in  hand  for  the  mone}^  he  parted  with, 
and  thus  the  w^orkers  never  will  get  back  'all  '  their 
products  for  the  money  they  obtained  in  wages.  Here 
in  this  vicious  cii*cle  of  money  and  products,  and  pi-o- 
ducts  and  money  is  the  labyrinth,  the  glen  or  the  den 
wher{^  labor  is  robbed  and  Adventurers  get  rich. 


148 


Labor  Movement. 


besides,  the  great  bulk  of  wealth  the}'  derive  b\' 
interest,  rents  and  foreclosures.  If  all  the  trades 
were  working  in  one  room  and  uuder  one  leader, 
appointed  by  the  Federation  of  Trades,  the}^  would 
soon  discover  this  very  important  fact,  and  at  once 
set  about  to  abolish  the  wage-system  altogether. 
Tlie}^  would  devise  plans  for  exchanging  pro- 
ducts mutually,  without  passing  them  through  the 
toll-gate  of  money.  But,  separated  as  they  are,  the 
complication  of  exchanges  obscures  this  fact. 
Shoemakers,  of  course,  do  not  go  to  market  and 
purchase  back  the  shoes  they  made,  but  buy 
every  other  article  that  their  comrades,  in  other 
trades,  made,  and  these  comrades  come  to  buy  all 
the  shoes  yim  made.  Now,  to  continue  the  illus 
tration,  suppose  all  of  you  get  dissatisfied  with  the 
one  dollar  a  day  wages,  demand  two  dollars  and 
strike  to  obtain  it.  How  will  it  be  then?  Leaving 
aside  any  personal  animosities,  and  assuming  that 
the  boss  Adventurer  is  willing  to  do  what  is  right, 
the  question  would  be  confined  to  one  or  the 
other  alternative,  viz :  either  he  has  the  two  doll- 
ars to  give,  or  not.  If  not,  then  the  contest  is  at 
an  end.  You  may  continue  your  strike  forever,  the 
double  money  wages  will  never  come.  Striking 
does  not  make  the  money.  If,  on  the  contrar^^  he 
has  the  two  dollars  to  give,  and  pa3^s  it  to  you,  will 
he  not  be  obliged  to  double  the  price  of  your  pro- 


Labor  Jlorcnieni. 


141) 


ducts  at  t]u3  same  time?  and  therefore  will  lie  not 
realize  the  same  profits  out  of  you  ?  Wlio  is  it 
that  would  have  to  pay  that  higher  pi'iee  ljut 
yourselves  when  3^ou  purc^hase  back  youi*  goods? 
Accordingly,  if  the  Adventurer  had  it,  he  could  })ay 
each  of  you  ten,  twenty  a,nd  any  number  of  dol- 
lars per  day,  and  3^ou  would  remain  as  poor  as  at 
one  dollar.  The  fatal  mistake  you  make  is  in  be- 
lieving that  money  constitutes  your  wages.  AVhat 
you  make  is  your  wages,  and  it  is  to  what  you 
make  that  you  should  learn  to  hold  and  to  exchange^ 
among  yourselves  l)y  co-operation.  Money  is  but  a 
deceitful  mirage  to  allure  you  to  ruin. 

There  is  another  point  of  the  utmost  importance 
in  this  wages  question.  It  is  that  ^  the  more  mon- 
ey you  demand  for  your  work,  the  fewer  men  can 
be  employed,  and  consequent!}^  tlie  less  products 
there  will  be  in  the  colou}^  to  consume.'  Thus  the 
higher  the  money  wages,  the  poorer  will  be  the 
whole  colony.  Let  us  illustrate  this  other  truth. 
Suppose  the  colony  was  but  one  large  family,  and 
that  all  the  money  we  had  in  it  was  but  $1,000. 
At  one  dollar  per  day  wages,  we  could  employ  1000 
men  oneda3\  In  the  evening  we  would  have  the 
products  of  1000  men  among  us.  If  the  next  day 
the  boys  strike  and  demand  two  dollars  per  day, 
we  will  only  be  able  to  employ  500  men,  ai\d  in  the 
evening  would  only  have  half  the  product  to  devide. 


150 


Laho)-  Jforcincnt. 


Millions  of  persons  are  out  of  employment  now  from 
lack  of  money  to  em  pi  03^  them.  More  would  cer- 
tainl}'  have  to  be  dlschai'ged,  if  it  sliould  take  more 
money  to  employ  those  occupied.  It  is  plain  to 
see,  if  w^e  will  only  turn  our  attention  to  it,  that 
money  is  neither  the  wages  of  labor,  nor  the  meas- 
ure of  labor  and  its  products,  noi',  finally,  the  wel- 
fare of  the  people.  If  we  count  on  money,  wait 
for  mone^N  measure  things  by  mone}',  depend  on 
money,  we  will  always  be  led  tn  the  very  opposite 
of  where  we  desire  to  go.  Take  the  word  price, 
for  instance,  which  is  entirely  measured  by  money. 
Low  prices  mean  '  abundance,'  high  prices  mean 
'  scarcity  '  of  anything,  l^ow  should  we  not  prefer 
abundance  to  scarcity  ?  Yet  strange,  we  all  desire 
high  prices,  believing  that  they  would  make  us 
richer  !  Even  our  Governor  works  to  obtain  high 
[)i'ices,  putting  a  tariff  on  foreign  goods,  in  order  to 
maintain  such  prices  for  goods  we  make  at  home. 
And  high  wages,  in  money,  is  the  primar}^  cause  of 
high  prices." 

In  conclusion,  we  said  to  our  shoemaker  friend  : 
The  only  way  by  which  you  shoemakers  can  be 
benefitted  by  high  wages  would  be  b^Mvceping  down 
the  wages  of  every  other  trade.  Thus,  when  you 
demand,  in  your  declaration  of  principles,  higher 
wa^es  fi)r  vourselves,  be  sure  and  demand,  at  the 
same  time,  that  the  wages  of  all  other  trades  be 


L((h()r  yfo  roue  ill . 


kept  low  ;  for,  if  the  wagers  of  all  other  trades,  es- 
peciall}'  of  fai'iiu^rs,  be  raised  sinudtaiieous] y.  no 
one  will  l)e  benefitted  by  the  operation.  The  cost 
of  living  would  go  up.  as  wages  w^ould  i-ise.  We 
thei-efort\  rtqjeat,  that  if  the  battle  of  labor  is  to  be 
fought  upon  the  line  of  higher  money  wages, 
and  higli  priees  for  produets,  our  doom  is  ahnnid}^ 
sealed.  Workingmeu  must  learn  to  res[)eet 
themselves,  and  value  their  own  })r()duets 
above  au}^  amount  of  money.  They  must 
value  a  saek  of  flour  for  the  food  that  it  eontains, 
and  not  for  the  dollars  that  they  may  get  for  it. 
Let  them  ever  remember  that  the  Adventurer,  who 
gives  dollars  for  the  flour,  expeets  always  to  get, 
mostly  from  workingmen,  more  dollai's  baek.  So 
hold  to  your  products,  and  learn  to  exchange  them 
without  money." 

Our  arguments  with  the  shoemaker  were  not  al- 
together lost,  as  he  was  the  means,  through  whom 
we  had  several  invitations  to  lecture  before  Trades 
Unions,  and  it  appeared  to  us  that  interest  in  our 
views  was  gaining  ground  very  I'apidly. 


CELEBRATED  MEN. 


Social  movenieiits  will  alwaA^s  bring  to  the  surface 
men  of  talent,  wlio  otherwise  woukl  have  gone  to 
their  grave  in  ol)securitv.  As  soon  as  tlie  Labor 
Movement  assumed  impoi-tance.  eloquent  speakers 
and  writers  of  eminence  took  up  the  cause.  We 
listened  attentively  to  their  speeches,  and  read 
eao^erh^  their  publications,  expecting  that  some  one 
woukl  discover  the  rock  against  which  the  industry 
and  commerce  of  the  coh)ny  were  wrecked,  viz; 
the  legal  tender  decree. 

Among  these  eminent  wi-iters  towered  Henry 
George  and  Edward  Bel  him  i.  But  Henry  George 
stranded  upon  the  hobby  that  private  ownership 
of  huid  "  was  the  cause  of  all  the  ills  the  colou}^ 
was  suffering  under,  not  considering  that  landlord- 
ism was  itself  but  one  of  the  effects  of  the  immense 
})ower  conferr-ed  upon  gold  by  the  legal  terider  de- 
cree ;  that  the  former  owners  of  land  had  lost  it, 
eitlun-  to  obtain  gold,  or  because  of  a  failure  to 
obtain  it.  Mr.  George  must  have  heard  many 
times,  as  we  did.  colonists  c(miplain  that  they 
were     land  poor,"  for  the  taxes  and  mortgages  on 


Jjibor  Moveuicnt. 


tlie  same,  were  dragging"  them  down  into  })Overty. 
He  surel}'  never  heard  a  man  (^omphviii  tliat  h(^ 
was  money  pooi-/'  for  that  was  tlie  (^lenient  whicli 
controlled  everything.  Mr.  (ieorg(^  must  hav(^  seen 
the  colony  pass  through  many  mom^v  panics,  that 
is.  the  whole  colony  in  trouble  and  distress  because 
of  inability  to  find  money.  He  surely  never  wit- 
nessed a  land  panic.  He  must  have  seen,  in  times 
of  tlu^se  mou(\v  panics,  men  imploring  creditors  to 
acce[)t  land,  at  the  valuc^  it  was  estimated  at  the 
tim(^  the  mortgage  was  given,  and,  upon  refusal  of 
the  creditor  to  accept  the  offer,  lose  three  times  that 
value.  Mr.  George  must  have  noticed  the  price  of 
land  go  u}),  when  money  was  plentiful,  and  go  down, 
when  scarce,  independently  of  all  intrinsic  value ot 
the  land  itself.  In  conclusion  Mr.  George  should 
have  seen  that  the  land  owner  was  always  in  sub 
jection  to  the  mom^v  holdei*,  and  in  millions  of 
cases,  was  ca|)tured  and  reductnl  to  poverty  by  said 
money  holder,  but  never  did  a  land  holder  l)ring 
into  his  subjection  a  money  holder. 

Xot withstanding  these  universal  facts  before  him, 
Henry  George  advocated  a  remedy,  which,  if  adop- 
ted, would  have  crushed  the  last  spark  of  pros])er- 
ity  out  of  the  woi'king  classes.  He  advocated 
taxing  the  value  ot  the  land,  to  comjx'l  its  suri'en- 
xler  to  th(^  Governor,  tlu'n  rcMit  it  to  those  who  had 
the  most  money.    H'  we  had  been  an  Adv(Miturei\ 


154 


Lahor  Movenioii. 


we  would  have  accepted  Henry  George's  doctrine 
at  once.  Workingmen  would  not  then  have  had 
the  ghost  of  a  chance  for  a  home.  All  their  sav- 
ings put  in  a  lot,  and  the  modest  home  built  on  it, 
would  be  swept  away,  without  compensation,  by  a 
rise  of  value,  and  consequent  high  taxes,  caused  by 
the  palaces  built  on  adjoining  lots.  AH  men  of 
small  means  would  have  been  dogs  in  the  manger,'* 
and  driven  away  b}^  more  fortunate  Adventurers. 
Mr.  George,  we  believe,  never  stopped  to  ponder 
over  the  meaning  of  those  two  words  value  "  and 
"  tax.'' 

On  board  a  sailing  vessel,  wliere  passengers  have 
paid  for  their  boai'd,  bread  has  no  money  value. 
During  a  protracted  calm,  passengers  may  be  lim- 
ited to  half  and  quarter  rations  ;  yet  bread  would 
continue  valueless.  But  if  the  commander  should 
post  up,  bread  for  sale,"  the  value  of  it  would,  at 
once,  rise  beyond  the  reach  of  the  p^or.  Yet  many 
of  these  may  have  mone}^  enough  to  obtain  a  few 
loaves.  I^ow  if  Henry  George  should  persuade 
the  commander  to  lev}^  a  tax  on  the  '  value  '  of 
bread,  in  order  to  compel  its  surrender,  would  it 
not  compel  the  poor,  who  have  no  more  money  to 
pay  the  high  tax,  to  give  up  the  last  loaf  the}'  have 
in  reserve?  Only  those  who  have  mone}^  enough 
to  buy  the  bread,  and  pay  the  tax  also,  could  ex- 
pect to  live  on  that  vessel.    A  tax  is  no  equalizer 


Labor  Movcmeni. 


155 


of  fortunes.  It  is  a  burden  on  the  poor.  Away 
witli  mone}^  value  "  and  extra  tax(\s/'  They 
are  one  a  deception,  the  otlier  an  o})[)ressi()n. 
Neither  can  raise  tlie  condition  of  tlie  human  race 
in  health,  wealth,  prosperity  noi-  happiness.  In 
his  '  Social  Problems  '  Mr.  (jreorge  says  that  the 
ideal  social  state  is  that,  in  which  each  gets  in  pi'O 
portion  to  his  contributions  to  the  general  stock.'' 
Hail  this  truth.  Hold  to  it  Mi*.  George,  and  do 
not  be  mislead  b}^  abstractions,  such  as  value,"  or 
absorptions  like  a  tax. 

Edward  Bel  lam  i  wove  an  attractive  story,  in 
pleasing  language  and  pictures  a  socialistic  j[)aradise, 
to  which  the  working  classes  would  attain  after  a 
few  generations  had  passed  away.  The  ways  and 
means  to  that  paradise  he  fails  to  point,  except  that 
he  painti>  the  road  to  it  as  passing  through  a  social 
forest  of  midnight  gloom,  a  total  subjugation  of 
all  <  he  industries  by  a  despotic  universal  trust,  made 
up  of  a  small  hierarchy  of  unfeeling  idlers,  in  pos- 
ession  of  all  the  sources  of  production,  avenues 
of  distribution  and  social  intercourse.  He  is  em- 
phatic in  impressing  the  living  generation  w^ith 
the  hopelessness  of  attempting  to  resist  the  onwai-d 
march  of  the  advancing  car  of  Juggernaut,  Avhich 
he  pi'esents  as  a  fatal  cataclysm  in  the  very  nature 
of  industrial  progress. 

Yet  in  the  face  of  this  darkest  of  all  periods  in 


156 


Labor  Movement. 


liuman  histor}^,  Bellami  endeavors  to  cheer  us. 
under  tlie  crushing  wheels,  b}-  the  hope  of  a  brightei* 
da}"  in  store  for  our  great  grand  children.  Religion 
preaches  submission  to  wrongs,  but,  as  compensa- 
tion, offers  a  paradise  immediately  after  death. 
Bellami  inculcates  the  same  submission,  without 
hope  of  reward  to  us,  nor  to  our  children.  Moses 
saw,  at  least,  the  promised  land  at  a  distance.  Bel- 
lami shows  us  ours  on  the  canvass  of  an  imagina- 
ination,  blurred  by  despair.  If  Bellami  had  built 
his  Social  Eden  "  in  the  moon,  and  enjoined  on 
the  living  to  never  attempt  the  building  of  ladder 
or  balloon,  wherewith  to  reach  it ;  but,  on  the  con- 
trary, to  suffer  oppression  with  resignation,  to 
the  end  of  our  da3"s,  and  teach  our  children  to  im- 
itate our  examples,  without  hope,  to  the  end  of 
their  <iays,  until  in  the  course  of  human  pro- 
gress, said  Eden  "  should  fall  upon  their  children 
of  its  own  gravity,  he  would  have  done  the  strug- 
gling masses  about  as  much  good,  ^^ay,  if  Bel- 
lami's  station  in  life  is,  as  he  presents  it  in  his  book, 
on  top  of  the  social  coach  with  the  oppressors 
of  labor,  and  his  intention  is  to  put  a  quietus  to 
the  already  threatening,  and  ever  growing  agita- 
tion among  the  masses, who  pull  at  the  rope,  he  could 
not  have  selected  a  better  method  of  destroying 
their  hope. 

It  may  be  ''in  the  nature  of  progress  "  that  the 


Lffhor  Morciiicnf. 


producMM's  of  all  couiforts  shall  lu'vcn*  enjoy  any, 
and  that  an  idU^  class  may  sul)ju<>atr  all  indusli-ial 
classes,  as  priests  and  warriors  have  (h)n(^  in  tlie 
past,  but  it  is  not  *  in  the  nature  of  man  /  esjxH'ial- 
ly  civilized  man,  to  suffer  wrongs  without  resent- 
ment. Hence  it  is  also  in  the  nature  of  things" 
that  as  op{)ressi()n  becomes  heavier,  resistance  w^ill 
increase,  until  the  irrepressible  conliict  comes  and 
the  strongest  will  survive.  Mr.  Bel  lam  i  has  done 
liowever  much  good.  He  has  awakened  a  deej)  senti- 
ment to  possibilities  in  the  human  race.  He  luis 
given  direction  to  the  incoherent  aspirations  of  the 
poor.  But  so  unsatisfactory  is  his  solution  of  tln^. 
labor  problem  thi'ough  inertia,  that  believers  in  his 
paradise  are  already  organizing  for  active  opei-ation 
to  attain  it. 


PUBLIC  MEETING. 


At  a  public  meeting  of  workingmen,  to  which  we 
had  a  special  invitation  to  speak,  we  held  the  fol- 
lowing talk  :  •  . 
Workingmen  and  women  of  all  callings  : 

Let  us  reason  the  condition  of  labor  together  in 
a  calm,  dispassionate  manner.  And  first  let  us  ask 
you:  is  it  not  true  that  you  can  do  as  much  work  in 
a  day  and  pi-oduce  as  much  of  anything,  whether 
you  are  paid  ten  dollars,  one  dollar  or  no  mone}'  at 
all  ?  Is  it  not  true  that  your  ability,  your  skill 
and  your  physical  and  mental  strength  is  within 
yourselves,  and  not  (Uitside  in  lumps  of  gold,  or 
slips  of  paper,  with  which  men  claim  to  pay  you  ? 
Frienrls,  all  the  wealth  we  see  to-day  in  the  world 
has  been  [)i*oduced  by  working  men  and  women, 
devoting  time  and  energy  at  it,  and  not  b}^  so  much 
money.  Who  knows,  or  cares  to  know  now,  how 
much  money,  or  what  pay,  those  men  and  women 
got  for  bringing  the  wealth  of  the  world  into  ex- 
istence? AVhen  we  find  that  those  who  created 
tliis  wealth  are  paying  rent  in  tenement  house^,  on 
tlie  outskirts  of  cities,  and  in  desolate  houses 

(158) 


Labor  Morcmcnf. 


159 


throughout  th<^.  country,  while,  those  who  in  (rely 
ordered  that  wealth  pi-odueed  and  claim  to  luive 
paid  for  it,  are  living  in  pahices  and  enjoying  the 
comforts  and  luxuries  of  civilization,  in  possession 
of  both  the  wealth  and  the  i)ay,  we  cannot  hut 
infer  that  the  workers  must  liave  received  little 
pay  and  a  very  treacherous  pay,  for,  by  it,  they 
have  lost  all  the  fruits  of  theii*  toil. 

From  such  grave  facts,  we  deduce,  that  the  lirst 
move  chat  labor  s;i  )iild  m  ikj,  tjvvar.ls  its  liberatio:), 
should  not  be  to  have  that  pay  or  wages  increased, 
because,  as  we  stated,  it  cannot  increase  neither 
your  ability  to  work  nor  the  })roducts  thereof,  but 
abolish  that  pay,  or  wage  system,  altogether.  If 
this  pay  was  abolished,  it  would  cut  otf  the  specu- 
lator altogether,  and  leave  the  workei's  in  full 
possession  of  ail  the  wealtli  they  produce.  Can 
this  be  done?  Of  course  it  can.  If,  as  we  said, 
Laboi-  can  perform  as  niuch  in  a  stated  time, 
whether  paid  in  moneys  or  not,  it  proves  that  money 
has  nothing  to  do  with  the  work.  Hence  if  labor 
cuts  off  the  money  pay,  in  so  far  as  the  wages  sys- 
tem is  concerned,  and,  with  it,  all  the  claims  of 
Adventurers  to  the  fruits  of  your  work,  will  be  cut 
off  also,  and  the  threatening  Laboi-  and  Capital 
question  would  be  settled  without  a  contest.  If 
workers  had  suppressed  that  pay,  say  ten  yeais 
ago,  they  would   now  be  in  possession  of  all  that 


160 


Labor  JforciHoit. 


remains  of  the  productions  of  the  last  ten  years. 
Cast  a  ghince  over  the  colony  and  see  the  vol- 
ume of  wealth    which  has  been  produced  the  last 
decade,  the  food  the  clothes,  the  improvements, 
owns,  and  palaces  in  cities,  see  the  railroads,  fac- 
tories, etc.,  behold  what  mighty  things  you  did  the 
last  ten  years,  then  tell  us,  whether  you  would  be 
paying  rent  in  uncomfortable  dwellings,  the  work 
of  your  own  hands,  in  inferior  parts  of  cities  and 
towns,  if  you  had  been  wise  to  hold  that  wealth 
in  your  possession?    S(mie  of  you  nuiy  think  that 
labor  had  to  live,  and  was  so  poor,  tliat  it  had  to 
aec.^.pt  wa^es,  and  with  the  wages,  it  lost  all  the  re- 
mains of  his  products  over  and  above  a  mere  sub- 
sistence.   Well,  let  us  consider  this  point.  Did 
not  labor  raise  and  prepare  all  the  food,  make  all 
the  clothes,  and  everything  else,  which  was  consum 
ed  to  support  life  the  last  ten  years?  Consequent- 
ly, did  not  labor  support  itself  (and  Adventurers 
too),   while    making    permanent  improvements. 
When  we  say  '  labor'  we  mean  the  workers  in  all 
departments  of  industry  and  commerce.    Of  course 
each  trade  by  itself,  separated  from  all  others,  can- 
not declare  its  independence;  but  half  a  dozen 
trades,  forming  a  Union  or  Federation,  can  bid  adieu 
forever  to  Adveriturers  and  their  pay.    These  Ad- 
venturers, with  their  money,  owing  to  the  worship 
of  that  nu)ney  by  the  colonists,  stand  between  the 


L(tJ}<)r  Movement. 


1()1 


various  industries,  keep  tliein  from  exeliaiiging 
goods  and.  services  among  themselves  and  get  pos- 
session of  the  permanent  "  product.  Advent- 
urers knoW' ,  that  the  day  when  labor  will  thus  co- 
operate, their  occupation  will  go  with  the  lost  ai'ts. 

This  is  what  labor  sliould  organize  for,  viz.,  to 
remove  tlie  power  of  money  from  between  the  dif- 
ferent industries  and  allow  them  to  come  to  a  har- 
monious and  t^quitable  interchange.  Labor  should 
tiank  this  baneful  power  of  money,  drive  the  Ad- 
ventures from  their  first  entrenchment,  the  wage 
system,  and  force  them  to  move  their  artillery  and 
munitions  to  their  second  range,  the  markets.  On 
these  markets  the  Adventurers  capture  the  products 
of  that  other  class  of  workers,  who  sell  what  they 
produce,  after  they  have  finished  it  for  use,  such  as 
farmers  and  manufacturers.  When  these  products 
are  brought  to  market,  they  are  entirely  at  the 
mercy  of  the  money  power.  This  power  fixes  what 
is  called  the  price,  "  and  producers  are  forced  to 
take  it. 

Again,  like  the  wages  i)ay.  this  ^'  price  "  pay  has 
nothing  to  do  with  the  quantity,  quality  and  use- 
fulness of  the  goods.  Nor  has  it  anything  to  do 
with  the  relative  value  of  such  goods  among  them- 
selves. Suppose,  for  instance,  a  miller  brings  to 
market  a  sack  of  fiour,  and  the  money  power  fixes 
the  price  of  it  at  S2.00,  and  a  hatter  brings  a  liat, 


162 


Labor  Movement. 


which  the  same  power  marks  also  at  $2.00.  Does 
that  fixing  and  marking  of  price  show  the  value  of 
the  flour  or  the  hat?  ISTot  a  bit  of  it.  It  only 
show^s  what  the  money  power  will  give  for  those 
articles.  True  values  and  human  wants  are  not 
considered  at  all.  The  flour  may  have  cost  twice  as 
much  labor  to  produce  as  the  hat.  The  farmer  and 
miller  may  be  losing  b}^  selling  at  that  price," 
while  the  hatter  ma}^  be  making  a  fortune  at  his. 

The  value  of  merchandize  should  be  made  up  of 
the  "  labor  bestowed  upon  it,  and  not  out  of  the 
whims,  caprices,  or  even  wants  of  a  man  or  a  few 
men,  who  happen  to  have  money.  Yet,  alas,  this  is 
universally  the  case.  Miller  and  hatter  bring  their 
produce  to  market.  A  thousand  men  on  the  same 
market  may  be  hungry  and  hatless.  They  and 
their  wants  have  no  bearing  upon  the  price  "  of 
flour  and  hats.  A  man  of  money  has  all  the  floui' 
he  wants,  but  needs  a  hat.  So,  at  the  bidding  of 
this  one  man,  flour  will  be  a  drug,"  and  hats  in 
demand.  They  tell  us  that  supply  and  demand 
regulate  prices."  It  is  a  delusion.  The  quantity 
of  money  regulates  prices. 

Supply  and  demand  have  long  since  ceased  to 
rule  markets. 

The  co-operation  of  producers,  and  the  adoption 
of  some  equitable  plan  of  exchange,  to  avoid  forc- 
ing their  productions  through  money,  would  drive 


L<<J)()i'  J\[<)V(  mcnt. 


this  power  from  its  second  eiitreiicliinent,  the  mark- 
et, and  contiiie  its  devastations  to  interest  and  rent. 
Again  as  we  will  endea  vor  to  demonstrate,  it  is  in  tlu^ 
power  of  labor  to  cnt  off  these  two  exhausters  also, 
b}^  ceasing-  to  borrow  money,  and  building  its  own 
homes.  Thus  will  end  the  woi'st  tyrant  that  the  hu- 
man race  ever  suffered  under." 

When  we  thought  we  had  done,  a  gentleman  in 
the  crowd  arose  and  I  tell  you.  sir,  what  ruins 
the  working  classes,"  he  said.  And  what  is  it, 
friend?"  we  asked.  ''It  is  'extravagance,"  he 
promptly  replied,  and  continued  :  The}^  are  try- 
ing to  ape  after  the  rich,  when  they  cannot  afford 
it.  I  know  mechanics,  whose  wages  do  not  exceed 
ten  dollars  per  week,  having  lace  curtains  to  theii' 
parlor  windows,  and  Brussels  carpets  on  the  floor. 
Then  their  wives  and  daughters  come  out  on 
Sunda}'  in  silk  dresses,  and,  if  you  visit  them,  they 
have  cakes,  pies  and  lots  of  delicacies  on  their 
table.  Some  of  them  have  organs,  and  some  even 
pianos,  on  which  the  girls  bang  all  evening  long, 
and  talk  '  college  talk  '  to  young  men.  How  can 
mechanics  pay  rent  on  a  respectable  house  and  keep 
up  such  extravagant  families  out  of  ten  dollars  a 
week  wages?  He  can't  do  it  "  he  concluded.  We 
replied  to  the  gentleman  by  asking  him  another 
(pK^stion.  ''What  is  your  occupation,  sir,  if  it  is 
not  improper?"    ''  I  am  employed  in  the  furniture 


164 


Labor  Movement. 


factoiy,"  he  answered.  "  And  you  blauie  work- 
ingmen  for  buying  furniture  do  3^ou?''  We  again 
asked  liim.  If  the}^  do  stop  buying,  friend, 
you  will  not  be  employed  long.  What  fur- 
niture the  rich  would  need  could  soon  be  supplied, 
then  the  market  for  it  would  end  and  the  factor}^ 
close.  Do  you  not  know  that  it  is  the  efforts  of  the 
working  classes  to  live,  dress  and  furnish  their 
houses  as  civilized  persons  should  do,  that  keeps 
three-fourths  of  the  workers  employed?"  Do  you 
not  know  that  if,  of  a  sudden,  they  were  to  lose  all 
self-respect  and  affection  for  their  families,  stop 
dressing  them  respectfully,  furnishing  their  homes 
attractively,  cheering  them  with  music  and  sending 
their  children  to  college,  or,  in  a  word,  stop  what 
you  call  extravagance,  do  you  not  know,  we  say, 
that  the  whole  fabric  of  our  boasted  civilization 
would  crumble  into  ruins?  True,  if  only  one,  or 
very  few,  of  the  working  men  were  to  turn  misers, 
''they"  would  get  rich,  but  their  wealth  would  come 
from  the  ruin  of  others.  If  a  furniture  maker,  like 
you,  would  stop  buying  fine  clothes,  lace  curtains. 
Brussels  carpets,  and  pianos,  he  will  of  course,  save 
all  these  expenses,  but  will  he  not  stop  the  making 
of  all  these  articles  to  that  extent?  And  how  will 
then  the  workingmen  in  those  industries  be  able  to 
purchase  furniture  from  him  ?  Let  us  tell  you, 
friend,  that,  if  you  try  to  better  the  condition  of 


Labor  Jlorciucni. 


the  working  classes  l)y  the  way  of  '^economy,''  tliat 
is,  by  ck)sing  out  tlie market,  for  what  the}^  produce, 
you  will  drive  tlieui  speedily  into  amass  of  misery. 
Let  Adventurers  advocate  such  doctrine.  They 
are  the  ones  to  profit  by  it,  I)ecause,  wlien  labor  is 
driveu  out  of  employment  by  such  policy,  they  will 
be  able  to  hire  them  cheaper.  But  let  no  su(^h 
doctrine  enter  the  braiu  of  the  workers. 

The  gentleman  confessed  that  he  had  not  looked 
at  the  question  in  that  light,  and  seemed  repentant. 

Again  a  rather  poorly  clad  workman  arose,  and 

wdiat  can  we  do,  when  we  have  nothing  but  our 
labor  to  sell,  and  no  one  to  buy  it  but  Adventu- 
rers?" he  asked.  We  replied  by  enumerating  tlie 
resources  in  the  control  of  labor. 

1st.  You  wield  the  grandest  power  on  earth, 
compared  to  which  mountains  of  gold  and  money 
avail  nothing.  We  mean  the  power  to  produce 
wealth.    Without  it  the  human  race  would  perish. 

2d.  You  have  it  in  your  power,  jointh^,  to  make 
or  unmake  the  prosperity  of  a  city,  town,  railroad, 
mine,  factory  or  commercial  house.  ]N"one  of  these 
can  live  if  you  withdraw  from  them. 

3d.  You  possess  3^et  vast  material  resources  and 
means  for  production,  especially  iuthehandsof  the 
agricultural  class,  who  are  the  foundation  of  all 
production. 

4th.    You  hold   a   complete  ascendency  over 


166 


Labor  3Tovem('nt. 


money  and  capital.  The  power  of  mone}^  will 
only  last  as  long  as  you  choose  to  surrender  labor 
and  services  to  it.  Capitalists  would  never  buy  a 
piece  of  land  or  lot,  build  a  house  or  factory  noi- 
open  a  mine,  if  assured,  before  hand,  that  you 
would  not  cultivate  the  land,  rent  the  house,  run 
the  factory  nor  work  the  mine.  It  is  upon  you 
that  capitalists  speculate  and  not  upon  land,  mines, 
factories  or  any  material  object. 

5th.  In  addition  to  the  above  enumerated  powers, 
you  have  within  yourselves  the  all-important  one, 
though  3^ou  are  not  yet  conscious  of  it,  viz  :  the 
power  to  nuike  your  own  mone^^"  Let  us  illus- 
trate. 

Imagine  a  small  tow^n,  of  three  or  four  thousand 
inhabitants,  favorably  located  as  to  fuel,  water, 
soil  and  transportation  facilities,  should,  of  a  sud- 
den, receive  a  loan  of,  say,  one  hundred  millions  of 
dollars,  for  the  term  of  ten  years,  on  condition  that 
the  whole  of  that  sum  should  be  expended  in  im- 
proving the  town  and  its  surroundings,  each  citizen 
receiving  a  proportionate  share  of  the  loan.  What 
would  be  the  result?  The  value  of  real  estate 
therein  would,  at  once,  rise  ;  labor  would  all  be 
set  to  work  at  remunerative  wages,  (we  speak  here 
from  the  standpoint  of  the  people,  as  wrapt  in  their 
money  prejudices),  improvements  spring  up  in  all 
(Hrections,  magnifictMit  buildings,   vast  manufac- 


Ldbor  Morciiicni. 


](>7 


turing  plants,  coininodious  residences,  broad  streets 
lined  witli  shade  tre(\s,  public  parks  and  fountains 
would  rise  as  by  enchantment.  The  *'  boom 
would  fill  the  pages  of  the  press.  Railroads  would 
direct  tlieir  lines  to  the  live  town  ;  farmers,  fai*  and 
near,  would  send  their  products  therein.  The 
small  town  would,  in  a  short  period,  assume  the 
proportions  of  a  metropolis,  with  theaters,  opera 
houses,  street  cars,  cable  lines,  schools,  colleges, 
cathedrals,  merchants  exchange,  clearing  houses, 
etc. 

Now  let  us  consider  the  financial  aspect  of  that 
phenomenon,  under  various  conditions. 

1st.  If  said  money  had  been  loaned  at  ten  per 
cent  interest  per  annum,  at  the  expiration  of  thv- 
ten  years,  the  original  sum  w^ould  all  have  gonc^ 
back  to  the  lender  in  interest,  Money  in  the  city 
would  be  extremely  scarce,  business  stagnant,  im- 
provements stopped,  labor  unemployed,  and  the 
value  of  real  estate  extremely  h)w,  yet  no  sales  ; 
merchants  and  manufacturers  would  fail,  and, 
when  doom's  day  had  come,  that  is,  when  the  day 
of  paying  the  principal  had  arrived,  the  city  would 
have  to  be  surrendered  to  the  capitalist,  who  loaned 
the  money.  All  loans  of  money  at  interest  will 
return  to  the  lender  and  carry  all  the  improve- 
ments, accomplished  through  the  loan,  to  him, 
leaving  labor  destitute.    The  time  required  to  ac- 


IBS 


Labor  3[ovemmt. 


coniplish  this  feat  is  determined  by  the  rate  of 
interest.  Accordingly,  at  the  end  of  ten  years,  the 
city,  whicli  a  short  period  before  was  full  of  life 
and  activity,  and  its  inhabitants  prosperous  and 
liapp3%  would  be  a  desolation,  and  its  people  charg- 
ed with  the  crimes  of  overproduction  and  extrav- 
agance. 

2d.  If  said  money  had  been  lent  free  of  inter- 
est,'' at  the  expiration  of  the  ten  years,  the 
builders  of  the  city  would  i-emain  the  possessors 
thereof,  but  the  withdrawal  of  so  large  a  sum  of 
mone}',  would  paralize  all  industries  and  commerce, 
cause  hard  times,  sink  all  values,  and,  to  a  great 
extent,  depopulate  the  city. 

3d  case.  If  said  money  had  been  loaned  "  free  of 
interest,"  but,  at  the  expiration  of  ten  years,  was 
discovered  to  be  spurious  or  counterfeit  arid  conse- 
quenth^  (believed  to  be)  worthless,  it  would  not  in 
the  least  change  tlie  past  progress  and  prosperit}^  of 
the  city,  but  its  disappearance  h^om  circulation 
would  stagnate  all  business,  lower  values  of  mer- 
chandise and  real  estate  as  much  as  if  genuine  gold 
and  silver,  but  withdrawn  by  loaners. 

4:th  case.  If  said  money  was  found,  at  any  time, 
to  be  counterfeit  or  spurious,  yet  kept  in  circula- 
tion without  interest,  and  the  people,  within  and 
without  the  city,  would  continue  to  receive  it  at 
par,  (as  the  benighted  comparison   witli  gold  is 


Labor  Morenicnt. 


expressed),  for  products  and  services,  it  would 
prove  a  nu»st  beneficent  money,  and  l]ence  a  great 
boon  to  workingmen,  because,  the  profits  of  Adven- 
turers being  thus  eliminated,  all  the  fruits  and 
benefits  of  labor  would  remain  in  the  hands  of  the 
producers,  which  is  the  highest  possible  rate  of 
wages  attainable. 

By  this  illustration  we  do  not  wish  to  be  misun- 
derstood as  advocating  counterfeit  money.  We 
aim  to  prove  the  important  truth,  that  whatever 
thing,  metalic  or  paper,  genuine  or  spurious,  which 
Labor  will  receive,  is  good  money,  and  whatever 
thing,  gold  or  diamond,  which  Labor  will  refuse,  is 
worthless  money." 

It  is  thus  evident  that  Laboi*  is  master  of  the 
situation,  viz  :  has  ample  resources  to  build  upon, 
can  make  its  own  money,  become  its  own  capital- 
ist and  self  employer  and  thus  rise  out  of  all  the 
evils  of  which  it  is  complaining.  To  realize  this 
desideratum,  requires  a  co-operative  association, 
embracing  a  sufficient  number  of  workers  of  vari- 
ous necessary  trades  and  occupations,  so  as  to  afford 
one  another  employment  and  support. 

CONSOLIDATION. 

While  the  agricultural  wing  of  the  Labor  move- 
ment was  contending  against  the  monstei*  monopo- 
lies  of    tiie   day,    endeavoring   to    check  theii- 


170 


Labor  Movemeyit. 


aggressions  by  legislation,  the  mining,  manufactur- 
ing and  building  wing  entered  into  a  series  of 
ruinous  strikes  against  their  emplo^^ers  for  higher 
wages,  which  resulted  in  a  great  loss,  not  ouly 
to  themselves,  but  to  merchants  and  farmers  also, 
by  the  stoppage  of  business,  and  had  consequently 
a  tendency  to  alienate  thetwo  great  departments  of 
production,  whose  union  is  absolutely  necessar}^  to 
success. 

Finally  the  strikes  began  to  slacken  from  ex- 
haustion of  funds,  and  with  them,  relaxed  the 
animus  of  Labor  associations.  Meantime  the 
farmers  had  made  no  perceptible  progress  towards 
checking  the  growth  and  exactions  of  monopolies. 
Both  wings,  becoming  conscious  of  their  respective 
weakness  separately,  began  to  unite  their  forces 
and  these  united  forces  moved,  at  first,  in  the  di- 
rection of  legislation,  clamoring  for  the  repeal  of 
several  acts,  to  which  they  attributed  the  pernicious 
division  of  society  into  extremely  rich  and  ex- 
tremely poor.  Their  declarations  "  of  principles 
and  ''demands,"  however,  were  vague,  full  of  glit- 
tering generalities  and  harmless  moralities  ;  hence 
easily  misinterpreted  and  evaded  by  the  parties  in 
power.  Years  passed  in  this  polemical  contest, 
and,  during  these  years,  monopolies  continued  to 
rise  in  power  and  producers  sink  deeper  into  trouble. 
At  last  the  largest  of  labor  organizations  consoli- 


Labor  Moremenl. 


171 


dated  tlieir  aims.  The  final  result  of  this  was 
the  appointment  of  a  committee  of  experts  to  make 
a  broad  and  impartial  investigation  into  the  "  Labor 
and  Capital prol^lem,  and  accompany  their  report 
with  suggestions  for  combined  action. 

We  give  the  ct^mmittee's  report  and  suggestions 
in  full. 


REPORT  OF  GENERAL  COMMITTEE. 


SURVEY  OF  THE  FIELD. 

The  XIX  century  will  be  characterized  in  history 
as  the  period  of  Labor  Organizations.  We  may  firid 
in  antiquity  instances  of  workingmen  participating 
in  social  affairs,  as  such,  but  no  trace  can  be  found 
of  a  movement,  on  a  notable  scale,  which  had  any 
resemblance  to  modern  labor  associations,  or  con- 
tained any  of  the  elements  and  aspirations  of  the 
same. 

Social  movements  are  the  result  of  surrounding- 
circumstances ;  and  the  circumstances,  which,  in 
our  time,  compel  labor  to  associate,  did  not  exist  in 
former  ages.    Here  are  the  circumstances  : 

1st.  The  minute  division  of  emplo^^ments,  which 
intensifies  the  necessity  for  rapid  exchanges,  and 
renders  each  worker  entirely  dependent  upon  a 
large  number  of  other  industries,  both  for  materi- 
als to  work  upon,  and  personal  support. 

2d.  The  wonderful  progress  of  mechanical  in- 
ventions, for  rapid  production  and  transportation 
which  turns  a  multitude  of  workers  out  of  em- 

(172) 


Ldhor  Morcmetd. 


ployiiieiit  and  kindle  a  hot  competition  for  })lae(\ 
causing  depression  of  wages. 

3d.  The  accumulation  of  wealth  in  th(^  hands  of 
a  few  powerful  corporations,  organized  for  tiie 
sole  purpose  of  realizing  profits  in  money,  an 
object  wliich,  to  better  attain,  re([uii*es,  as  one  of 
the  means,  the  pressure  of  wages  down  to  a  mini- 
mum, and  the  raising  of  the  price  of  their  products 
and  services  up  to  a  maximum.  Crushed  between 
these  two  millstones  Labor  is  forced  to  seek  refuge 
in  Association. 

4th.  A  limited  and  monopolized  legal  tender 
money,  which,  by  insufficiency,  leaves  a  large 
volume  of  industries  and  exchangeable  commodi- 
ties in  a  state  of  paralysis,  forces  millions  of  men 
and  women  out  of  emplo^^ment,  in  destitution  and 
want,  and  still  furthei-  intensifies  the  competition 
for  work,  and  consequent  downfall  of  wages. 

In  addition  to  the  above  main  causes  of  labor 
associations,  there  is  another  circumstance  which 
facilitates  the  movement.  This  is  great  modern  en 
terprises  concentrating  under  one  management 
large  masses  of  workers,  who,  like  soldiei-s  in  the 
same  army,  feel  a  similarity  of  interests  and  aspi- 
rations, fuse  their  grievances,  and  thus  open  the 
way  for  association  and  concerted  action. 

When  we  take  into  consideration  the  above  sur- 
roundings and  conditions,  it  becomes  easy  to  com- 


174 


Labor  DIovement. 


prehend  the  drift  of  modern  labor  organizations, 
and  to  infer  tlie  object  to  which,  of  necessit}^,  all  of 
them  are  tending. 

Some  writers  on  The  Labor  Movement,"  con- 
fonnd  modern  labor  organizations  with  conimnnistic 
associations.  These  two  phenomena  have  nothing 
in  common.  Commnnism  is  the  outcome  of  reli- 
gious, especially  Christian,  sentimentalism,  while 
modern  labor  associations  are  the  outcome  of 
economical  pressure,  caused  by  lack  of  emploj^ment 
and  low  wages.  Communism  originated  in  the 
sentiment  of  brotherhood,  inspired  by  religious 
doctrines  ;  it  draws  its  devotees  from  rich  and  poor 
alike;  while  labor  associations  draw  from  poor 
alone,  and,  at  tirst,  form  unions  composed  of  but 
one  single  trade  or  avocation.  Communism  ex- 
tends the  hand  of  brother-hood  to  all  nationalities, 
being  essentialh'  catholic  in  principle;  while  labor 
associations  are  preeminently  exclusive,  and  oppose 
foreign  pauper  labor.  The  foundation  of  commun- 
ism is  laid  in  ethics,  and  its  aspirations  are,  not 
the  acquisition  of  wealth,  but  peace  and  good  will 
towards  one  another  on  earth  ;  while  the  basis  of 
labor  associations  is  laid  in  economy,  and  their  as- 
pirations are  permanent  employment,  high  mone}^ 
wages  and  reduced  hours  of  dail}^  toil.  Commun- 
ism never  laid  a  claim  on  outsiders,  capitalists, 
employers  or  rulers,  and,  during  centuries  of  ex- 


Labor  3T(>V('men1. 


175 


iritence,  never  had  a  strike  ;  wliile  all  the  claims 
and  demands  "  of  hibor  associations  are  on  out- 
siders,  capitalists,  employers  and  governments,  and, 
during  the  short  period  of  their  existence,  had 
thousands  of  sti'ikes  and  parties  in  th(^  ])()litical 
arena.  Tlie  mere  fact  that  some  nK^m])ers  of' 
labor  associations  are  imbued  with  communistic 
principles,  and  that  communists  sympathize  with 
the  labor  movement,  does  not  prove  that  these  two 
social  phenomena  are  identical  or  even  paniUel. 
Again,  as  the  four  main  circumstances  winch  caused 
labor  to  associate,  exist  and  arealike  in  all  civilized 
countries,  and  under*  all  forms  of  political  and 
civil  institutions,  and  religious  creeds,  it  should  be 
proof  sufficient  that,  if  political  institutions,  or 
religions,  have  any  bearing  upon  the  phenomenon, 
it  must  be  due  to  such  institutions  and  creeds, 
which  are  alike  under  all  governments  and  religions. 
This  is  the  monetar}^  system  alone.  All  civilized 
nations  have  the  same  monetary  system,  and  the 
subjects  and  citizens  of  these  nations  believe  alike 
in  the  supernatural  efficac}^  of  money.  This  origi- 
nated in  the  orient,  followed  the  industries  west 
ward,  as  wolves  follow  the  migration  of  buffaloes. 
Like  wolves,  it  lives  by  depredation,  and  is  equally 
protected  and  fostered  by  all  governments,  from 
despotism  to  republics.  Regarding  laboi-  associa- 
tions, governments  are  generally  [)assive,  and  tol- 


176 


Labor  3Torement. 


erate  or  forbid  their  existence,  (iccording  as  the}^ 
manifest  a  teiulency  to  intei'fere  with  the  powers 
that  be.  AVe  see  in  our  colony  politicians  favor  or 
oppose  the  movement,  actuated  solely  by  the  hope 
of  gaining,  or  the  fear  of  losing  thereby.  In  tlie 
Old  Countr}^,  some  rulers  are  just  now  turning  a 
friendly  eye  to  them,  })ecause  they  see  the  time 
approaching  when  they  will  need  the  physical  aid 
of  laboi'. 

Yet  governnuMits  are  generally  charged  as  being 
the  immediate  cause  of  Labor's  condition,  and  those 
who  so  believe,  socialists  and  economists  of  the 
school  of  Henry  George,  advocate  political  reform, 
as  the  renuMly. 

Your  committee  will  not  go  to  religion  or  poli 
tics,  will  not  apph^  to  communism  or  governments, 
for  light  on  the  question  at  hand  ;  nor  will  the}^  go 
to  either  for  the  remedy,  excepting  for  a  modifica- 
tion of  monetary  legislation.  We  shall  confine  our 
researches  and  efforts  witliin  the  battlefield  of  in- 
dustr\%  where  alone  the  contest  is  raging.  We  do 
not,  however,  den}^  the  fact,  that  religious  senti- 
ments and  political  institutions  could  help  to  allay 
existing  animosities,  and  assist  in  elevating  the 
social,  and  even  financial,  status  of  the  working 
classes.  But  religion  and  politics,  the  minister  and 
legislator,  could  on.ly  do  so  by  coming  down  from 
their  spiritual  and  civil  pinnacles,  into  the  fields  of 


Labor  Movement. 


Ill 


industiT  and  coinineree.  and  liere  lielp  to  modify 
the  relations  of  men,  and  to  change  tlie  metliods  of 
development. 

Eeturning  to  onr  subject,  and  assuming  that  the 
reader  has  well  impressed  upon  liis  mind  the  main 
causes,  winch  concur  to  depi-ess  labor  \\\  all  coun- 
tries, as  before  stated,  and,  from  these  causes,  he 
has  inferred  the  object  to  which  labor  associations 
are  tending,  viz  :  to  secure  constant  employment, 
high  mone}^  wages  and  less  toil,  he  is  now  in  a  po- 
sition to  view  the  iield  carefully,  ponder  upon  the 
situation  of  the  })arties  concerned  and  consider  how 
the  problem  at  hand,  which,  is  avo\vedly  the  S[)hinx 
of  this  age,  may  be  solved,  with  the  least  possible 
harm. 

Let  us  not  fly  in  a  fit  of  passion,  murder  some 
hanker,  bond-holder  or  employer,  blow^  up  a  city  or 
upset  the  government.  Such  violent  proceedings 
would  only  bring  destruction  upon  the  perpetrators 
and  retard  the  progress,  and  final  solution,  of  the 
labor  cause.  No,  let  us  maintain  good  will  toward 
all  classes  of  men,  and  apply  reason  and  common 
sense  to  the  solution  of  the  problem.  First,  let  us 
exami?ie  the  social  surroundings  of  labor,  and  see 
whether  any  of  tlie  causes  of  depression,  as  above 
stated,  could  be  stopped,  changed  or  modified. 

The  first  of  these  causes  is  tlie  division  of  em- 
ployments "  reducing  eacli  worker  into  dependence 


178 


Labor  Movemeyd. 


oil  a  large  number  of  others.  Certainly  we  can 
not,  and  should  not,  if  we  could,  attempt  to  hinder 
or  disturb  said  division  of  employments.  It  is  nat- 
ural and  necessary  to  the  rapid  progress  of  civili- 
zation. It  is  in  analogy  with  the  diversity  of  skill, 
taste  and  talent  in  man,  and  the  diversity  of  pro- 
ductions on  the  earth.  It  is  of  universal  benefit. 
Eighteen  persons  emplo^^ed  to  make  one  pin,  ena- 
bles them  to  make  more  pins,  in  a  given  time,  than 
eighteen  thousand  persons  could,  each  making  a 
whole  pin.  The  same  applies  to  all  other  indus- 
tries. It  is  only  when  employments  are  so  divided, 
when  a  person  is  repeating  one  and  the  same  stroke, 
that  machinery  can  take  his  place.  In  regard  to 
the  earth's  varied  products,  it  is  only  when  man 
devotes  his  time  and  energy  to  cultivate  those  crops 
for  which  the  soil  is  best  adapted,  or  to  using  ma- 
terials which  give  him  advantages,  that  the  best 
results  can  be  obtained,  and  labor  most  amply  re- 
warded. The  minute  division  of  employments 
increases  production  a  thousand  fold.  By  its 
wonderful  mechanism  and  concatenation,  it  enables 
a  person,  who  pays  but  one  dollar  a  year  subscrip 
tion  on  a  newspaper,  to  set  in  motion  a  legion  of 
his  fellow  beings,  by  day  and  by  night,  on  land  and 
oceans  to  search  the  globe  for  news,  and  bring  them 
to  him  to  read  at  his  breakfast  board.  Besides  these 
wonderful  material  achievements,  this  division  of 


Labor  Movemeni. 


170 


employments  tendwS  to  iiiiite  and  harmonize,  into  on(^ 
universal  brotlierliood,  the  whole  human  i'ac(\ 
lienee,  we  advise  to  not  attempt  to  disturb  this 
order  of  nature  and  the  progress  of  social  and 
mechanical  evolution  in  this  direction. 

The  second  cause  is  ^'  the  progress  of  mechanical 
inventions."  Shall  we  endeavor  to  arrest  this 
progress  ?  Could  Ave  do  it,  if  we  desired  ?  It  is 
absurd  to  even  mention  the  idea  of  checking  inven- 
tions. We  might  as  well  attempt  to  check  the 
liow  of  rivers  to  the  ocean,  or  stop  the  earth  on  its 
course.  Besides,  if  the  working  classes  ever  expect 
rest  fi'om  their  toils  in  this  world,  and  yet  enjoy 
the  manyfold  comforts  they  are  entitled  to;  if  they 
ever  expect  their  hours  of  labor  to  be  reduced  to  8 
01'  6  or  4  per  day,  it  is  to  machiner}^  that  they 
must  look  fi:>r  the  boon,  and  not  to  employers  or  the 
government,  by  peremptory  demands  and  strikes. 

The  third  cause  is  "the  concentration  of  wealth 
in  the  hands  of  a  few."  What  shall  we  do  about 
this  ?  Shall  we  gain  possession  of  the  government 
at  the  polls,  then  force  a  division  of  the  wealth  of 
nations  among  the  people  thereof?  Would  such 
division  bring  the  desired  objects,  viz:  work,  high 
wages  and  less  hours  toil  per  day?  Why  no. 
Undei'  the  monetary  system,  the  very  reverse  would 
follow.  No  man  would  be  able  to  employ  another. 
1^0  one  could  run  an  enterprise  of  the  least  extent. 


180 


Labor  3Iovcment. 


Ass  well  may  the  stockholders  of  a  railroad  divide 
up  the  same,  each  taking  his  rod  or  mile  of  it. 
The  concentration  of  wealth  is  absolutely  necessary 
ti)  modern  industry.  It  is  of  immense  benefit. 
Therefore  it  should  be  encouraged.  Without  it, 
our  magnificent  enterprises  could  not  have  been 
accomplished,  nor  undertaken.  The  productive 
force  of  man  is  not  in  the  individual ;  it  is  in  the 
"voluntary,"  or  forced  "  co-operation  of  a  number 
of  individuals.  Modern  industrial  corporations 
'compelled'  the  workers  to  co-operate  and  thus  made 
possible  the  construction  of  a  transcontinental  rail- 
road, the  laying  of  a  transatlantic  cable,  the  tun- 
nelling of  the  Alps,  and  the  many  other  stupendous 
achievements  of  our  time.  As  an  instance.  Time 
was  wh^n  plows  were  made  by  the  village  smith, 
and  crude  and  rude  instruments  they  were.  When 
invention  had  so  far  advanced  as  to  enable  plows 
to  be  made  by  machinery,  but  requiring  the  combi- 
nation of  many  men  and  much  capital,  if  someone 
had]endeavored  to  induce  the  village  smiths,  to  com- 
bine, form  a  union,  put  their  individual  means  and 
work  together,  erect  a  factory  and  make  better 
plows,  faster  and  easier,  and  thus  work  only  8 
hours  per  day,  and  at  better  wages,  probably  not 
one  of  them  could  not  have  been  persuaded  to 
favor  the  enterprise.  Thus  invention  would  have 
perished  unused,  and  progress,  in  plow-making 


Labor  Morciuoit.  1 


woliiil  hjue  Ijeeii  |)revent(M].  (^jpitalists  cainc  lo 
tlie  res(3iie  of  both  invf^ntion  and  [)r()gr(^ss. 
B}^  iiieaiis  of  men's  worsliip  of  money,  t]u\y  forced 
a  number  of  workers  to  co-opoperate  and  nnvke 
plows  by  niaeliinery.  Ihil,  in  doir.|i,  tlie^v 
destroyed  tlie  business  of  the  village  sjnitlis. 
compelled  tiiem  to  seek  employment  at  the 
plow  flictory,  and  finally  form  a  Union,  this  time 
not  to  build  a  factory  of  their  own,  but  to  demand 
of  their  employers,  higher  wages,  less  hours  work, 
and  strike  to  obtain  their  request. 

Again  time  was,  not  far  l)ack,when  ever}^  farnu^r 
had  a  scalding  box  and  smoke  house,  killed  arid 
cured  his  own  pork  at  home,  and  sold  the  surplus 
to  the  town  grocer}^ ;  while  ever\^  town  liad  its  own 
butcher  shop  to  kill  and  cut  all  the  cattle,  and  hogs 
consumed  as  fresh  meat  in  the  town.  When  in- 
vention, aided  by  railroads  and  machinery,  had 
devised  methods  for  killing,  dressing  and  curing 
hogs,  cattle  and  sheep,  on  a  large  scale,  far  more 
economically  and  profitably,  if  any  one  had  en- 
deavored to  induce  farmers  to  combine,  erect  pack- 
ing houses,  and  butcher  their  own  stock,  co-opera- 
tively, not  one  couhl  have  been  persuaded  to  invest 
in  the  undertaking.  Capitalists  took  tlie  mattei'in 
hand,  built  packing  houses,  destroyed  scalding 
boxes  and  smoke  houses,  acquired  the  monopoly  of 
both  cattle  and  meat,  and  al)sorbed  the  profits  of 


182 


Labor  Movemenf. 


cattle  raising.  ^^ow,  cattlemen  are  aroused, 
organize  Alliances,  Granges  and  Unions,  and  hold 
conventions,  not  however  to  build  packing  houses, 
nor  to  return  to  the  old  system  of  butchering,  but 
to  urge  government  to  interpose  in  their  behalf 
and  compel  capitalists  to  relinquish  the  cattle  mo- 
nopoly and  pay  them  remunerative  prices.  Packers 
i-eply  to  their  denuind  by  capturing  local  butchers 
also,  to  prevent  farmers  from  being  able  to  control 
tlie  fresh  meat  market ;  that  is  by  drawing  the 
chains  tighter. 

What  has  liappened  to  the  village  smiths  and 
cattlemen,  has  happened  to  shoemakers,  tailors  and 
all  other  trades,  and  is  now  in  process  among 
nuH'chants.  AVhile  tliese  still  persist  in  struggling 
against  one  another  and  rel3^ing  on  competition  as 
the  'life  of  trade,'  capitalists  form  trusts,  erect  mag- 
nificent structures  in  their  midst,  undersell  them 
in  every  article  of  merchandise,  drive  them  to  ruin 
thi'ough  this  pet  competition,  and  finalh^  will  force 
them  to  seek  employment  at  the  big  establish- 
ments" as  clerks.  Shortly  these  clerks  will  form  a 
Union  and  ''  strike  "  for  higher  wages  and  night 
rost.  AV^ould  these  doomed  merchants  listen  to  the 
call  of  co-operation,  if  sounded  to  their  ears  to-da}^  ? 
We  believe  not,  and  shall  not  make  the  attempt. 
Their  time  has  not  conie  yet.  They  first  will  wait 
for  ruin,  then  oi*ganize  for  protection. 


Labor  Morcmcni. 


18:] 


Behold  tlie  natural  and  iinivei\sal  c()urs(^  of  (lie 
iiidustrial  stream.  But  what  will  the  final 
result  ? 

Your  couHuittee  will  give  an  answer  to  this  im- 
portant question  by  an  expression  of  their  unaiii 
mous  opinion,   drawn    from    indications  already 
visiole  upon  the  industrial  horizon. 

All  these  ruined  multitude  will  finally  convei'ge 
into  a  general  co-operative  movement  of  theii'ow^n, 
which,  in  turn,  will  overthrow  these  great  mono- 
polies and  trusts,  and  establish  liberty,  interdepen- 
dence and  equity. 

Thus,  according  to  our  investigation  of  indus- 
trial and  economical  evolution,  we  find  corporations 
and  trusts  to  be  necessai'y  evils "  to  forward 
progress  in  the  period  intervening  between  the 
competitive  system  and  general  voluntary  co  oper- 
ation. This  may  properly  be  named  thc^ 
vulcanic  "  period  of  producti(m  and  distribution. 
Monopolies  will  be  noted  in  history  as  the  most 
powerful  instruments,  in  the  hands  of  Providence 
to  destroy  competition,  wliich  is  economical  war- 
fare among  rational  beings.  Nothing  is  warring 
against  it  with  the  force  that  they  do. 

Human  events  and  social  institutions  present  a 
different  aspect  to  the  observer,  according  as  he 
plants  his  telescope  of  observation  in  periods  pre- 
ceding  or    following    their   advent.  Institutions 


184 


Labor  ^lonnitcyd. 


which  look  bad  to  us  of  this  generation,  such  as 
despotism,  shivery,  conquest,  speculation,  monopo- 
lies and  trusts,  would  appear  quite  different  it  we 
coukl  beliold  them  from  ages  preceeding  them,  and 
will  yet  change  aspect  when  looked  at  from  ages  to 
come.  Despotism  was  an  improvement  ever  gen- 
eral insecurity  of  life  and  property  ;  conquest  was 
often  an  extension  of  civilization,  and  would  be  a 
boon  to  the  populations  of  Africa  to-day  ;  slavery 
was  a  vei-y  great  advance  over  the  slaughter  of 
prisoners;  speculation  has  saved  many  people  from 
starvation,  has  served  to  make  tlie  populations 
of  the  globe  bettei*  known  to  each  othei*,  and  has 
distributed  wider  the  V)enelits  of  local  2>roducts,  in 
times  when  nothing  else  could  have  done  it;  and 
now  monopolies  are  pi'oving great  instrumentalities 
of  progress  and  civilization,  and  harbingers  of  a 
universal  co-operative  estate  just  daw^ning. 

The  fourth  cause  is  the  insufficiency  of  money 
and  monopoly  of  existing  amount."  Here,  in  this 
money,  your  committee  has  discovei'cd  the  root  of 
all  disorders,  the  cause  of  all  social  distinctions, 
the  robber  of  Labor,  and  at  the  same  time  the  sole 
power  which  could  force  co-operation,  and  hence 
make  possible  the  vast  enterprises  of  the  age,  IN'o 
other  power  or  instrumentality  could  luive  per- 
formed tlie  work. 

Xow  your  committee  are  fully  convinced  that 


Labor  Movement. 


185 


this  same  instrument,  money,  brouglit  to  a  rational 
system  and  applied  to  the  service  of  labor,  will  be 
as  efFectual  to  establish  voluntar}^  co-operation  as 
it  has  been,  in  the  hands  of  capitalists,  to  force 
such  co-operation  in  their  own  behalf,  and  volun- 
tary co-operation  will  open  a  new  world  for  the 
human  race. 

The  incentive  to  association,  owing  to  the  ag- 
gregate of  a  large  number  of  workers  under  one 
management,  will  prove  a  mighty  auxilliary  to 
voluntary  co-operation,  as  it  will  furnish  all  the 
elements,  moral,  intellectual  and  physical,  for  its 
immediate  success. 

Leaving  now  the  outward  circumstances  which 
have  brought  about  and  continue  the  association  of 
labor,  your  committee  passed  into  the  interior  of 
these  labor  Unions  to  investigate  and  find  what 
could  be  done  there  in  their  behalf. 

As  repeatedly  stated,  here  the  associations  are 
clamoring  for  three  main  objects,  viz:  permanent 
employment,  high  money  wages  and  shorter  day's 
work.  Their  method  of  obtaining  these  has  mainly 
been  to  fence  each  Union,  or  trade,  against  addi- 
tions from  the  outside  world,  by  ap]>rentice  regula- 
tions, and  by  demands,  addressed  indefinitely  to 
employers  and  governments,  that  rats  and  scabs, 
(by  whom  they  mean  non-unionists),  children 
criminals,    foreign    paupers    and    contract  labor 


186 


Labor  Movement. 


be  excluded  from  competing  with  them  of  the 
Union.  The  only  weapons  used  in  the  contest 
liave  been  the  strike  and,  lately,  the  bo3^cott.  Shall 
your  committee  assist  these  Unionists  to  build  a 
Chinese  wall  against  rats,  scabs,  children,  criminals 
and  foreign  paupers,  who  togethe'r  constitute  the 
mass  of  humanity?  Alas,  how  can  we?  Leaving 
out  of  the  question  the  duty  of  men  to  one  another, 
charity,  morality,  justice,  the  golden  rule,  the  much 
vaunted  inalienable  right  of  every  man  in  pursuit 
of  happiness,"  we  would  find  our  puny  forces  in  front 
of  a  might}^  army,  led  by  a  greater  general  than 
can  be  found  in  the  Union,  viz:  General  Distress. 
This  is  the  dauntless  leader,  who,  without  the  aid 
of  drums,  fifes,  patriotic  harangues  or  any  of  the 
flummery  used  to  drown  the  humane  sensibilities 
and  intoxicate  the  brain  in  war,  arouses  men  to 
fight  like  wild  beasts,  and,  in  the  face  of  whom,  life 
itself  is  not  worth  preserving.  It  is  hunger,  it  is 
wife  and  children  without  bread,  clothes  or 
shelter  which  drives  men  over  the  earth  to  seek 
employment,  and  compels  them  to  accept  any 
wages,  high  or  low.  Hence,  we  deem  it  not  onh^ 
vain,  but  positively  dangerous  for  a  Union,  compos- 
ed of  but  a  few  thousands,  to  raise  the  war  cry 
against  a  hungry  army  of  millions  outside  of  it. 
^^or  will  it  avail  to  hold  meetings,  make  speeches 
and  pass  resolutions  ordering  that  hungry  army  to 


Labor  3T()vemmi. 


187 


halt  ill  their  quest  for  food  and  pei'isli  in  idleness, 
in  order  that  we,  of  the  Union,  may  liave  more 
work  and  better  wages.  Besides,  let  us  look  a  lit- 
tle deeper  into  the  nature  of  the  contest,  (^xiiminf^ 
the  parties  involved  in  it  and  the  relative  position 
of  tiie  outside  world.  In  so  far  as  to  obtain  em- 
ployment is  concerned,  the  battle  is  confined  within 
the  ranks  of  each  trade  ;  l)etween  Unionists  on  one 
side  and  non  Unionists,  of  the  same  trade,  on  the 
other  side.  Shoemakers,  for  instance,  are  not  afraid 
that  brick-la^^ers  will  compete  with  them  for  em- 
ployment. They  fear  and  fight  shoemakers  only. 
Nor  do  brick-layers  fear  shoemakers,  but  fear  and 
fight  brick-layers  only.  The  same  of  every  other 
trade  and  occupation.  N'ow  what  have  we,  out- 
siders, to  do  with  such  family  qua  ridels  among 
shoemakers,  brick-layers  and  others?  We  have  all 
we  can  do  to  keep  down,  or  to  keep  up,  similar  con- 
tention in  our  own  trade.  We  too  have  our  Union, 
our  rats,  scabs,  children,  criminals  and  foreign 
paupers  in  battle  array  competing  with  us.  So 
much  about  empU)yment.  But  when  it  comes  to 
the  other  part  of  the  contest,  to  the  higher  wages 
part,  the  world  outside  the  Unions  becomes  really 
interested  on  the  side  of  rats,  scabs,  children,  crim- 
inals and  pauper  foreign  labor,  who  of^er  them 
cheaper  service,  and  cheaper  goods,  and  against  the 
Unionists,  who  attempt  to  make  them  pay  higher 


188 


Labor  Movement. 


for  both  services  and  goods.  Say  what  we  please, 
argue  as  we  may,  the  world  at  large  will  ever  favor 
tlie  cheapest  of  everything.  'Cheap,'  means  easy  to 
obtain,  '  dear,'  means  hard  to  get.  Men  prefer  ease 
to  hardship.  This  is  ingrained  in  human  nature. 
To  this  instinct  are  due  all  mechanical  inventions. 
Accordingly,  in  the  matter  of  higher  wages,  each 
Union  of  workingmen,  has  not  onl}^  the  non-un- 
ionists of  their  own  trade  to  contend  against,  but 
the  whole  world  besides.  Whoever  argues  other- 
wise, will  belie  his  own  arguments  the  moment 
he  goes  to  a  store  to  purchase  goods,  or  hires  labor. 

There  is  yet  another  aggravating  circumstance 
against  Unionists  in  this  mighty  contest.  It  is 
tha  t  as  a  general  thing,  they  are  men  of  small  means, 
therefore  least  able  to  stand  the  contest.  They  live 
by  daily  work  and  cannot  afford  to  declare  war 
against  the  whole  world.  Each  Union  does  but 
one  thing,  makes  but  one  article  that  the  world 
needs,  while  the  world  makes  every  other  thing  that 
these  Unionists  need.  And  even  for  that  one  arti- 
cle, which  the  Unionists  make,  the  world  has  the 
rats,  scabs  and  all  non-unionists  of  the  same  trade, 
to  resort  to,  who,  in  number  exceed  largely  the  Un- 
ionists. Are  not  these  grave  facts  before  our  eyes  ? 
Is  it  not  true  that  large  establishments  and  corpo- 
rations resort  to  rats  and  foreign  labor  ?  Have 
Unionists  ever  conquered  permanently  in  any  im- 


Labor  Mornncnt. 


189 


portant  conflict?  Or  has  the  public  whose  intere^^t, 
as  we  liave  demonstrated,  is  virtually  against  the 
Unionists,  ever  taken  an  active  part  in  their  favor? 
What  unequal  and  hopeless  struggle!  Imagine  a 
few  Union  liatters,  for  instance,  to  threaten  tlui 
world  with  a  strike,  when,  if  farmers  formed  a 
Union,  and  struck  also,  these  hatters  would  inevi- 
tably perish,  while  farmers  could  wear  their  old 
hats,  or  feed  rat  hatters  to  make  them  new  ones. 

A  few  words  upon  the  reduction  of  the  hours  of 
labor,  which  is  now  prominently  agitated,  may  not 
be  here  amiss.  This,  we  believe,  will  certainly  be 
granted  by  both  government  and  emplo^^ers.  The 
government  is  mainly  composed  of  an  army  of 
salaried  men,  who  desire  high  salaries  and  short 
hours'  work  Hence  the  eight  hour  move  will  find 
a  favorable  response  there.  Employers,  on  the  other 
side,  can  only  be  hurt,  by  the  grant,  on  contracts  at 
hand.  Regarding  new  contracts  and  new  produc- 
tion, all  they  want  is  to  make  the  charige  general, 
so  as  not  to  subject  themselves  and  their  goods  to 
unfavorable  competition.  But  the  important  ques 
tion  to  labor  is  '  will  such  move  be  beneficial  to 
them?'  We  think  not.  The  change  will  only 
make  production  cost  one-fourth  more,  and,  as  the 
working  classes  are  the  greatest  consumers,  it  will 
compel  them  to  pay  one-fourth  more  for  all  they 
use  and  consume,  without  realizing  any  more  fi)r 


190 


Labor  Blovement. 


their  work.-  If  they  were  working  for  tliemselves, 
the}^  would  readily  see  this  truth,  Tlie}^  would  se^ 
that  the  less  hours,  the  less  product.  Let  us  give 
an  illustration  of  the  effect  of  the  eight  hour  rule. 

At  ten  hours  work  per  day,  twelve  men  could 
build  a  house,  at  a  cost  of  $1200,  which  would  rent 
for,  say,  $10  per  month.  On  the  eight  hours  day, 
the  same  house  will  cost  the  builder  $1500,  and  ac- 
cordingly, must  rent  it  at  $12.50  per  month.  The 
twelve  mechanics  have  made  no  more  mone}^  than 
they  did  before,  and  now  they,  or  their  comrades, 
being  the  renters,  have  to  pay  $2.50  more  rent  per 
month,  as  long  as  the  house  lasts.  True  they  rest 
more,  but  rest  is  simihir  to  idleness,  and  leads  to 
poverty.  But  this  is  not  yet  all  the  damage  re- 
sulting from  the  change.  Work  and  production 
will  progress  one-fourth  slower.  To  build  said 
house,  in  the  same  time,  will  require  the  addition 
of  three  men,  making  fifteen.  Now  fifteen  men 
will  do  no  more  work  than  the  twelve  did  before, 
but  consume  one-fourth  more  of  the  products  of 
others,  which  product  will  also  be  reduced  in  quan- 
tity one-fourth  the  former  suppl3^  In  regard  to 
the  house,  th'M*e  will  be  fifteen  men  competing  to 
rent  it,  and  every  tyro  in  political  economy  knows, 
that  when  demand  rises,  value  rises  too.  Conse- 
quently the  twelve  men  will  not  be  able  to  rent  said 
house  even  at  $12.50  per  nu^nth,  but  may  have  to 


Labor  Morcincni. 


191 


pay  owing  to  the  competition  of  tlie  othei- 

three  men. 

Tlie  result  of  the  eight  hour  eliange  will  not  af- 
fect nmt  alone,  but  every  article  of  consum])ti()n, 
and  use  produced  under  it.  If  farmers,  who  woi  k 
now  at  least  twelve  hours  per  day,  couhl  enjoy  the 
benefit  of  the  reduced  hours,  which  they  cannot, 
(the  character  of  their  work  not  allowing  it),  their 
products  would  rise  50  per  cent.  Exportable  com- 
modities, coming  in  competition  with  foreign  goods 
could  no  longer  be  sold,  and  therefore  theii'  produc- 
tion would  cease  and  men  discharged. 

It  would  also  arouse  the  animosity  of  farmers 
against  mechanics  and  other  classes,  who  should 
enjoy  the  benefit  of  it.  Look  at  it  as  we  may,  we 
see  but  disaster  to  the  laboring  classes  in  the 
change.  It  w^ould  be  as  if,  of  a  sudden,  the}^  had 
been  crippled  and  disabled  to  the  extent  of  one- 
fourth  their  former  ability. 

In  these  criticisms,  your  committee  intends  no 
reflection  on  organized  labor.  We  merely  aim  to 
show  the  futility  and  hopelessness  of  the  present 
method  of  warfare  and  prove  the  necessity  of 
changing  base  and  resorting  to  more  promising 
methods,  if  success  is  to  be  attained. 

Thus  your  conimiti^ee  comes  out  of  this  ''survey" 
convinced  that  the  existing  industrial  disorder 
not  chargeable  particularly  to  individual  men  or 


192 


Labor  3fovement. 


classes.  Thei-e  has  been  no  intention  in  any  of 
them  to  harm  others,  but  all  float  along,  as  easy  as 
possible,  down  the  social  stream  of  life  in  quest  of 
health,  wealth  and  happiness.  Existing  conflicts  of 
interest  are  due  to  ignorance  and  are  intensifled  b}^ 
the  period  of  social  ev^olution  through  which 
we  are  passing.  It  is  the  period,  as  we  said,  inter- 
vening between  the  downfall  of  competition  and 
the  advent  of  voluntary  "  co-operation.  We  see 
clearly  how  monopolies  were  made  necessary  to  put 
in  operation  the  wonderful  inventions  of  this  age. 
We  see  what  powerful  agencies  of  progress  and 
civilization  they  have  proven  to  be;  and  further 
we  see  in  them  the  harbingers  of  future  harmony. 

True  these  monopolies  have  been  prompted  by 
the  narrow  and  selfish  object  of  mere  lucre.  True 
they  have  brought  destruction  to  thousands  of  in- 
dustries of  former  times,  and  have  reduced  millions 
to  poverty  and  servitude,  the  latter  of  which  is 
much  to  be  deplored.  But,  with  the  narrow  and 
false  conception  of  the  nature  and  functions  of 
money,  which  the}^  and  the  colonists  held  in  com- 
mon, we  cannot  imagine  how  such  calamities  could 
have  been  averted.  Inventions,  as  we  said,  made 
the  combination  of  large  masses  of  workers  neces- 
sar3^  before  they  had  been  educated  for  concerte^l 
action.  Hence  no  alternative  remained,  except 
either  to  discard  inventions  and  continue  to  plod 


Lahor  Movement. 


198 


along  with  the  okl  method  of  produetion  and  trans- 
portation, which  were  daily  becoming  inadequate 
to  increasing  population  and  wants,  or  "compel  " 
workmen  to  co-operate.    Capitalists,  taking  advan 
tage  of  the  situation,  "forced''  cooperation  and 
absorb3d  all  the  banefits  of  it.    Now  the  time  has 
come  for  reversing  this  order  of  things.  Truth 
must  take  the  place  of  error  and  superstition,  in 
money  matters,  as  well  as  in  other  things.  Confi- 
dence among  producers  themselves  must  take  the 
place  of  faith  in  inert  metals  and  bankers.  A 
change  of  this  character  will  render  speculative  co- 
operation and  monopolies  superfluous,  and  they, 
and  the  monetar}^  system,  upon  which  they  are 
based,  will  pass  away.    Monopolies  are  plants  of 
rapid  growth  and,  as  such,  will  be  short  lived, 
Labor  associations,  on  the  contrary  will  prove  the 
drilled  army,  ready  to  enter  the  new  industrial  era, 
fully  equipped  and  ready  for  action.    Your  com- 
mittee only  regrets  that  these  associations  should 
have    wasted     so    much    valuable    time  and 
means  in  the  wrong  direction.    But  let  the  past 
bury  its  dead,  and  let  us  onward  to  the  morrow  of 
a  brighter  day. 


THE  REFORMATION. 


In  seeking  for  a  reform  of  the  method  of  pro- 
duction and  distribution  of  wealth  now  prevailing 
your  committee  has  not  been  satisfied  to  stop  at 
the  surface  of  things.  We  first  fixed  upon  the 
object  to  be  attained,  then  passed  to  the  considera- 
tion of  the  ways  and  means"  to  attain  it.  The 
great  desideratum  of  the  working  classes,  and,  in 
fact,  of  mankind  at  large,  materially  speaking,  is 
real  wealth,  viz  :  abundance  of  food,  clothes,  a 
home  and  as  many  of  the  comforts  and  social 
amenities  of  life  as  possible.  Through  wealth 
alone  can  the  mental  and  moral  standing  of  man 
be  elevated.  Hence  real  wealth  became  our  fixed 
object.  Seeing  the  esteem  that  men  place  upon  the 
'  value  '  and  '  price  '  of  real  wealth,  we  devoted  a 
short  time  to  the  consideration  of  these  two  terms, 
but  soon  abandoned  them,  as  mere  abstractions, 
which  neither  add  nor  take  away  from  the  utility 
of  real  wealth.  They  are  a  delusion  and  a  snare, 
in  the  hands  of  speculators,  to  acquire  wealth  with- 
out equivalents.  The  principal  object  of  produc- 
tion should  be  for  '  use,^  and  not  for  '  sale.'  Unfor- 

(194) 


Til  e  Reform  a  i  io  n . 


195 


tuiuitely  Labor  has  been  too  prone  to  part  witli  its 
products  for  money  ;  consequently  shilocks  are  to- 
day in  possession  of  the  wealtli  which  labor  shoukl, 
of  right,  own. 

Setting  ''real  wealth  "  as  our  ol)jective  point,  we 
reasoned  that,  as  such  wealth  originates  in  labor, 
its  volume  must  be  in  direct  proportion  to  the 
amount  of  labor,  (not  money  nor  laws),  bestowed 
upon  its  production.  At  an}^  place  on  the  earth 
and  any  period  of  human  history,  the  larger  the 
number  of  persons  employed  in  production,  the 
larger  must  have  been  the  volume  of  wealth,  and 
^  vice  versa.*  This  is  an  axiom.  From  it  we  in- 
ferred that  the  first  requisite  to  the  material  eleva- 
tion of  the  working  classes  is  '  emplo^nnent.'  N^ot 
gold,  silver,  precious  stones,  wampum,  mediums  of 
exchange,  (especially  of  the  sort  we  have),  nor 
petitions,  resolutions,  demands,  verbose  platforms, 
high  wages,  high  prices,  strikes,  boycotts,  lockups, 
single  tax  nor  voting.  All  of  these  are  empty 
sounds,  and  unavailable  means  to  the  acquisition  of 
wealth.  — 

With  wealth  as  our  target  and  '  emplo^^nent  ' 
the  instrumentalit}'  to  obtain  it ;  with  also  the 
cheering  fact  that  millions  of  idle  persons  and  un 
told  natural  resources  are  strewn  all  around  us,  we 
next  turned  our  attention  to  the  '  ways  and  means  ' 
for  apphing  this  idle  labor  to  the  dormant  re- 


196 


The  Reformation. 


sources,  which  lead  us  into  the  heart  of  the  '  mon- 
e}^  question.'  Your  committee  approached  this 
question  with  all  the  care  due  to  it.  We  were  well 
aware  of  its  importance  to  do  otherwise.  Accord- 
ingly, we  anal^^zed  the  mysterious  riddle,  and 
found  the  word  '  money  '  to  be  composed  of  four 
distinct  elements,  each  of  which  performs  a  dis- 
tinct function  in  exchange,  and  the  confusion  of 
which  elements  has  been,  we  believe,  the  stumbling 
block  to  political  economists  in  the  solution  of 
the  problem. 

These  four  elements  are  : 

1st.  '^Medium  of  Exchange,"  which  is  a  commo- 
dity intervening  between  the  exchange  of  other 
commodities,  when  direct  barter  is  impracticable. 
Many  articles  have  been  used  for  this  purpose. 
The  leading  ones  have  been  gold  and  silver.  The 
article  most  appropriate  for  the  purpose  is  the  one 
which  embodies  in  the  highest  degree  the  following 
qiialiti3;,  viz:  durability,  divisibility,  portability, 
most  widely  known  and  appreciated  and  '  sufficient' 
in  quantity  to  reach  all  exchanges.  If  it  falls  short 
of  all  requirements,  it  becomes  unfit  as  a  medium 
to  the  extent  of  its  shortcomings,  for,  to  that  ex- 
tent, exchanges  will  be  paralyzed,  and  other  articles 
or  methods  will,  of  necessity,  have  to  be  resorted 
to.  But  these  supplementary  articles  or  subsidiary 
methods,  should  be  independent  of  the  original 


77/ r  Ji< foruKffton.  1  ^ 

medium,  bi^cause,  if  iiisufliicient  at  one  period  and 
localit}'.  it  will  be  more  so  in  futur(^  ])eriods  of  in- 
creased industry  and  extended  commerce.  The 
theory  of  money  redemption  lias  ever  proved  but  a 
snare,  and  shouhl  be  discarded. 

2d.  "Medium  of  Payment,"  viz:  an  article  or 
articles  most  suitable  for  the  payment  of  debts. 
The  function  of  paying  debts,  is  quite  different  from 
that  of  a  medium  of  exchange,  and  requires  differ- 
ent qualities.  It  should  embod}^  utiliiy  above  all 
things.  An  article  of  no  utility  to  man,  is  not  fit 
to  restore  property  borrowed  or  due.  It  should  be 
of  equal  value  to  the  article,  or  articles,  obtained 
at  the  time  the  debt  was  contracted,  viz  :  it  should 
be  "  value  "  paid,  for  "  value  "  received  ;  and  not, 
as  under  the  present  law,  commodity  paid  for  com- 
modity received.  "  Commodities  "  change  value 
with  circumstances,  while  values  do  not  change. 
But,  above  all,  it  should  be  an  article  possessed,  or 
within  reach,  of  the  debtor,  without  causing  him 
extra  sacrifices  of  property. 

3d.  "Unit  of  Value.''  Units  of  all  characters 
and  for  any  purpose,  should  be  mere  abstract 
names.  It  is  the  height  of  folly  to  attempt  to  ma- 
terialize a  unit  of  computation.  It  is  a  mathemat- 
scal  impossibility  ;  it  is  absurd.  Legislators  deceive 
themselves  in  the  belief  that  they  have  accomplish- 
ed such  feat  in  the  I^nit  of  value.    How  wrong  I 


198 


Til  ('  Kefonnatio n . 


They  have  indeed  "  fixed  "  b}^  law,  the  liumber  of 
graiiKs  "  of  gold  required  to  make  a  dollar  of  that 
uietah  So  have  they  ''fixed"  the  number  of 
••pounds"  required  to  make  a  bushel  of  wheat; 
but  both  these  units  (dollar  and  bushel),  so  filled, 
are  based  on  another  unit  of  weight,"  and  not  on 
••  value."  In  the  case  of  the  bushel,  reason  has 
never  been  assumed,  or  legalized,  that  the  word 
••  bushel  should  imply  wheat  and  wheat  alone.  In 
the  case  of  '•  dollar  "  it  is  confined,  and  enforced 
with  all  the  rigor  of  which  the  law  is  capable,  to 
gold  alone.  This  mental  aberration  is  inexplicable. 
('i)nnected  with  it,  is  a  still  more  erroneous  idea, 
viz  :  that  legislators  can  fix,  and  have  fixed  the 
''value"  of  the  dollar,  by  merely  declaring  how 
many  grains  of  gold  constitute  it !  Declaring  that 
'•  sixty  pounds  "  of  wheat  constitute  a  bushel  " 
of  that  grain,  does  not  fix  the  value  "  of  the 
same.  If  it  did,  there  would  no  longer  be  a  fluc- 
tuating wheat  market.  Similarly  declaring  that  so 
many  grains  of  gold  shall  constitute  a  dollar,  does 
not  fix  the  "  value  "  of  that  metal.  Value  and 
weight  are  very  dissimilar  things. 

Your  committee  will  adopt  the  word  dollar 
(significant  of  one  average  day's  labor  spent  in  the 
production  of  any  useful  article,  and  not  so  many 
grains  of  gold)  as  a  unit  for  the  computation  of 
values,  and  leave  the  word  to  mean   a  dollar  of 


The  U(  for  mat  ion. 


VM) 


aiiytliing'  wliieh  may  hi'  under  consideration. 

4th.  "  Mon<n'  of  Account."  Tlie  Ix^st  (jualilica- 
tions  for  a  money  of  account,  in  industi-y  and  com- 
merce, are  sim{)licity,  accui'acy  ])()rtability,  (ii visi- 
bility, durability,  transferability,  personal  (that  it 
may  be  recovered  b}^  owner  if  lost)  easy  recog- 
nized, hard  to  countei'feit.  and,  above  all,  based 
upon  real  wealtli,  and  not  upon  one  single  and  mo 
nopolized  commodity. 

Of  these  four  elements  we  adopted  the  word 
dollar"  as  "unit,"  as  we  said,  and  the  element,  or 
'Vmethod  of  account  "  as  mone^^  ;  discarding  the 
other  two  altogether.  Civilization  has  outgrown 
the  age  of  mediums  "  of  exchange.  Ninety  seven 
per  cent  of  commerce  is  now  effected  without  the 
use  of  cowries,  wampum,  l)eads,  gold,  silver  nor  any 
other  ancient  or  modern  trinket.  Kor  did  we  con- 
sider it  essential  to  adopt  a  medium  of  payment." 
In  the  plan  of  co-operation,  herein  formulated,  we 
have  excluded  debts,  as  presentl}'  understood,  to  be 
paid  in  ancient  "  mediums. "Humanity  has  had  too 
severe  and  painful  an  experience  under  such  debts. 
The  only  important  requisite  in  exchanges  is  a 
"title  "  to  the  general  stock  of  wealth.  This  title 
can  only  be  rationally  issued  by  the  recipients  of 
that  wealth,  which  in  the  case  of  socialism,  would 
be  the  government.  But  whether  issued  by  tlu^ 
government  or  agents  appointed  by  depositors  of 


200 


The  Ecforniafion. 


wealth  in  the  general  store,  these  titles  should  uo 
longer  be  written  on  wampum,  silver,  gold  or  an}^ 

medium."  Such  materials  are  too  scarce  and  too 
costly  for  the  functions  to  be  performed.  Paper  is 
abundant  and  cheap.  Hence  we  will  have  no  fear 
of  falling  into  panics  from  lack  of  money.  ^sTor 
shall  we  ever  part  with  sources  of  supph^,  or  needed 
commodities,  for  ^'  trinkets  "  wherewith  to  exchange 
what  remains  among  ourselves.  W e  feel  convinced 
that  the  days  of  such  folly  are  numbered. 

Your  committee  feel  confident  that,  upon  a  care- 
ful and  thorough  examination  of  the  co-operativ(^ 
plan  herein  proposed,  the  philosopher  will  find  that 
it  contains  the  redemption  of  the  human  race  from 
the  "slough  of  despond,''  into  which  the  monetar}^ 
system  has  plunged  it. 

Before  we  proceed  to  frame  the  co-operative  sys- 
tem which  your  committee  has  agreed  to  recom- 
mend, we  deem  it  appropriate  to  narrate,  with  some 
amplifications,  an  event  in  the  history  of  money, 
which  opens  the  way  to  a  fuller  understanding  of 
the  within  plan. 

THE  GUERNSEY  MARKET  HOUSE. 

In  the  parish  of  St.  Peter,  Island  of  Guernsey, 
marketing  was  carried  on  in  ill-protected  stalls 
around  the  church  square.  The  losses  to  venders 
by  rains,  and  the  inconveniencies  to  buyers,  made 


Tliv  licj'onnai ion. 


201 


the  need  of  a  covered  market  lioiise  keenly  felt, 
and  some  public  s[)irited  citizens  took  the  matt(M' in 
hand  to  have  one  built.  An  estimate  of  tlui  liouse 
required,  brouglit  its  approximate  cost  ^'  in  money 
to  $22,000,  and  to  raise  this  amount  of  money  be- 
came the  question  with  the  promoters  of  the  scheme. 
It  was  a  question  liowever  of  easy  solution,  as  tliey 
had  tliousands  of  precedents.  Tliey  drew^  up  a. 
petition,  setting  forth  the  need  of  a  market  house, 
and  desiring  the  governor  to  issue  "  interest  bear- 
ing bonds,  to  be  negotiated  in  Paris  or  London, 
for  the  money,  wdierewith  to  erect  the  building.  To 
said  petition  were  appended  tlie  signatures  of  some 
three  hundred  liouseliolders  in  the  parish.,  and  a 
committee  was  appointed  to  present  the  same  to 
Governor  De  L'  Isle  Brock. 

It  happened  that,  while  the  people  were  money 
worshipers;  that  is,  believers  in  the  omnipotence  of 
money,  Gov.  Brock,  on  the  contrary .  was  a  mone^ -in- 
fidel ;  that  is,  did  not  believe  that  money  was  able  to 
d()|the  least  thing.  Consequently,  when  the  commit- 
tee presented  tlie  petition,  superstition  and  science 
came  in  conflict.  The  Governor  set  to  work,  with 
arguments,  to  ]:)revent  the  citizens  from  going  into 
debt,  and  becoming  tributar^^  to  bankers  in  Paris  or 
London.  At't(^r  explaining  to  the  committee  that 
all  the  money  in  the  world  could  not  make  nor  lay 
<i  brick,  could  not  plane  nor  nail  a  plank  in  the 


202 


The  Reformat  ion. 


market  house,  with  little  effect,  he  finally  struck 
the  right  channel  and  reached  their  understanding 
as  follows  : 

Will  you  permit  me,"  he  asked  the  committee, 
to  plac^.  before  you  some  ver}^  simple  questions?'* 
Then  continuing,  have  we  the  necessary  number 
of  mechanics  among  us  to  build  said  house  V  he 
asked.  The  committee  replied  that  they  had,  ad- 
ding that,  owing  to  dull  times,  many  workmen  were 
out  of  employment  and  would  be  glad  of  the  job. 
This  reply  the  Governor  put  down  on  paper  sum- 
marily:  "We  have  the  men."  He  then  asked 
about  the  materials,  rocks,  bricks,  lumber,  lime  and 
sand;  about  tools,  teams,  as  well  as  all  the  requi- 
sites to  maintain  men  and  teams,  while  the  work 
was  being  executed.  To  all  of  these  questions  the 
committee  had  to  reply  affirmatively,  because  the 
whole  was  to  be  found  in  the  parish.  Holding  then 
the  list  in  his  hands,  the  Governor,  with  the  full 
assurance  of  being  in  the  right,  addressed  the  com- 
mittee as  follows  :  "  Here  you  tell  me  that  we  have 
within  ourselves  everything  needed  to  build  the 
market  house,  yet  you  desire  me  to  bond  "  you  to 
bankers  in  Paris  or  London  for  a  material  which  is 
of  no  manner  of  use  in  the  construction  of  the 
house.  Strange  anomaly  !  "  It  is  true,"  remarked 
one  of  the  committe,  "  that  we  have  men  and  ma- 
terials all,  but  we  lack  the  money  to  pay  the  men, 


The  Reformafion. 


203 


and  buy  the  materials."  '^Friends,''  replied  the 
Governor,  "when  a  man  gets  paid  for  work  or  ma- 
terials, it  means  that  he  has  sold  "  and  pai'ted 
with  the  objects  that  he  has  been  paid  for.  Is  it 
your  intention  to  build  a  market  house  for  bankers  ? 
If  so,  then  you  are  correct  in  3^our  endeavor  to  get 
"  paid  "  b}^  those  bankers.  But,  in  sucli  case,  you 
should  not  place  yourselves  under  bondage  to  those 
bankers  besides.  If  those  bankers  "  pay  you  for 
the  house  and  hold  you  in  bondage  also,  demand- 
ing an  annual  tribute,  the}^  will  soon  have  both  the 
house  and  the  money  they  paid  you.  It  will  be  no 
relief  to  say  that  we  make  the  "  renters  "  of  the 
market  stalls  pay  that  tribute  to  the  bankers.  The 
renters  will  be  part  of  us,  and  will  demand  of  their 
customei's  that  tribute  in  higher  j)rices  for  goods. 
So  we,  jointly,  will  have  to  pay  tribute  in  per- 
petuity for  an  article,  which,  as  I  said,  is  not  of  any 
use  to  us.  Allow  me,  gentlemen,  to  propose  a  bet- 
ter plan  for  building  our  market  house,  than  by 
wa}^  of  money  and  bondage.  Having,  as  3  on  avow, 
men  and  materials  among  us,  all  that  is  necessary 
to  do,  in  the  case,  is  to  keep  accounts  of  each  man's 
contributions  in  work  or  materials,  that,  in  the 
future,  we  ma}^  balance  equitably  the  expenses  of* 
the  building.  This  can  best  be  done  by  means  of  a 
money  which  lays  no  claims  to  interest  nor  dis- 
counts.   Instead  of  bonds,    I  will  issue  .^22,000, 


204: 


The  Reformation. 


markethouse Scripts  "  of  differi3iit  deuoiiiiiiations 
(as  money),  and  with  these  pay  the  men  and  pnr- 
chase  materials,  then  make  these  scripts  receivable, 
at  par  with  the  legal  tender  money  of  tiie  reahn. 
for  the  rent  of  the  market  honse  stalls."  The 
committee,  after  some  hesitation,  assented  to  the 
Governor's  plan.  Most  of  the  citizens  also  agreed 
to  it.  The  Scripts  "  were  issued,  thi^  materials 
procured,  the  men  put  to  work  (uiany  ha/d  been 
long  time  idle),  the  building  erected  and  the  stalls 
rented.  The  scripts  circulated  in  the  Island  at  par. 
Every  month's,  rent  reduced  their  quantity,  and,  in 
less  than  ten  years,  they  were  all  back  in  the  treas- 
ur}^  and  stamped  cancelled."  The  house  had 
been  built,  the  contributors  of  work  and  materials 
were  now  all  paid  with  the  goods  they  had  pur- 
chased at  the  market  house,  or,  indirectly,  else- 
where, and  not  one  cent  lost  to  the  people  in  inter- 
est nor  discount. 

Governor  De  L'  Isle  Brock  did  not  let  this  mon- 
etary event  pass  into  obsecurity.  On  the  contrary, 
he  desired  to  impress  it  vividly  upon  the  mind  of 
liis  people,  and  stamp  it  in  the  pages  of  history  for 
the  benefit  of  future  generations.  According^  he 
appointed  a  special  day  to  celebrate  the  anniversa- 
ry of  the  building  of  the  market  house,  and  give 
burial  to  the  Scripts,  which  had  performed  the  ex- 
changes with  equity  and  m)W  had  ceased  circulating. 


The  Ji('Jorni(ifio)i. 


205 


At  the  app  >int('(l  day  tlie  (^rowd  Ix^gan  early  to 
gather  on  thi^  })ul)]ic  s(|uare  in  front  of  the  market 
house,  which  was  f(\stooned  with  <;ar]ands  and 
sti'eainers  and  on  its  (ai[)ohi  waved  a  large  flag, 
bearing,  in  broad  gilt  ](4ters.  tlie  motto:  ''As  good 
as  if  built  witli  boi'i'owed  gold.'' 

At  ten  a.  m.,  tiie  procession  formed,  and,  pi'ece- 
ded  b}'  bands,  begiui  to  file  off  tlirough  the  streets 
of  tlie  little  burg.  Along  the  line  were  carried 
standards,  on  wdiich  were  inscribed  mottos  like  the 
I  ■■  following:  ''Hail  the  new  financial  system,'' 
'•Down  with  bonds  and  borrowing,"  "Adieu  bank- 
ers," ''  Labor  and  Capital  have  united,"  Down 
with  interest,"  ''  Money  an  old  fraud,"  etc.  The 
processiori  made  the  round  of  the  burg,  returning 
at  two  p.  m.  Here  marshals,  on  horseback,  arran- 
ged the  crowd  in  a  circle  on  the  square,  in  the 
center  of  which  was  erected  a  speakers  stand  and. 
hy  the  stand,  a  Vestal  fire  kindled.  When  all  was 
ready,  the  band  struck  a  national  song  of  liberty, 
while  the  Governor,  accompanied  by  tw^o  attend- 
ants, who  carried  each  a  bundle  of  cancelled  ;;cripts. 
advanced,  majestically,  to  the  fire  and  halted. 
Suddenly  the  band  stopped.  The  (jrovernor  took 
the  bundle  of  scripts  from  his  attendants  and, 
holding  them  up  to  the  gaze  of  the  multitude,  pro- 
nounced the  following  impressive  tribute  : 

"  Well  done,  good  and  faithful  servants.  Wliile. 


206 


The  Reformation. 


living  3^011  have  performed  your  work  with  equity, 
and  now  departing  you  leave  no  interest-extorting 
bC>nds  nor  mortgaged  home  behind;  but,  instead,  you 
open  the  portals  to  a  brighter  financial  era.  May  the 
toilers  learn  wisdom  from  this  example." 

He  then  sprinkled  the  bundles  with  perfume, 
and,  while  the  band  was  playing  a  dirge,  laid  them 
on  the  fire,  where  they  were  quickly  consumed,  in 
the  presence  of  a  silent,  solemn,  thinking  mass  of 
people. 

After  the  cremation  of  the  scripts,  the  Governor, 
though  no  public  speaker,  ascended  the  stand  and 
delivered  the  most  important  financial  speech  ever 
delivered  on  eai'th  before  or  after.  It  was  as 
follows  : 

"  Fellow  citizens  :  P^or  the  first  time  in  the  his- 
tory of  this  island  you  have  learned  to  make  3- our 
own  money.  You  have  built  your  own  market 
house,  without  borrowing  one  cent,  without  losing 
one  cent  in  discount  and  without  paying  one  cent 
of  interest.  N'ow,  when  everyone,  who  contributed 
w^ork  or  materials,  has  been  fully  paid,  as  attested 
by  the  return  of  the  scripts  through  the  rent,  the 
house  is  yet  your  property.  Henceforth  the  rent 
of  the  same  will  be  appropriated  to  the  expenses  of 
the  government,  and  hence  lessen  your  taxes." 
Turning  then  to  the  market  house,  and  pointing  to 
the  flag  floating  on  its  cupola,  "  Behold,  he  exclaim- 


The  ReforvKtfion. 


2(17 


ed  in  loud  tones,  a  niDnument  of  your  iinancial 
wisdom  and  as  good  as  if  built  with  borr(>we(l 
gold,"  may  future  generations  profit  by  your 
(example."  With  this  lie  descended  from  the  plat 
form  amidst  the  wildest  acclamations  of  the  multi- 
tude and  the  deafning  isound  of  the  band. 

Your  committee  aims  to  extend  the  monetary 
s^^stem  of  Governor  Brock  to  production  and  dis- 
tribution in  general,  with  marked  improvements. 

Permanent  wealth  can  be  built  upon  the  follow- 
ing economical  principle^  or  plans  : 

1st.  As  '  public  '  enterprises  to  which  all  citizens 
are  forced  to  contribute,  by  taxation,  in  proportion 
to  their  means,  and  all  participate  in  the  benefits 
thereof  forever. 

2d.  As  'capitalistic'  enterprises,  either  directly 
on  the  wage  system,  or,  indirectly  by  loans  of 
money  ;  when  rent,  iu  the  former  case,  and  inter- 
est, in  the  latter,  will  carry  both  money  and  pro- 
duct to  the  capitalists. 

3d.  As  '  co-operative'  enterprises,  when  individ- 
ual contributors  use  money  or  in  lieu  of  money,  a 
stationary  or  portable  method  of  accounts,  such  as 
w^as  done  in  the  building  of  the  market  house, 
which  will  leave  said  contributors  in  perpetual 
possession  of  their  joint  product.  Governor  Brock 
built  his  house  as  a  co-operative  enterprise,  by  vol- 
untary contributions,  then  at  the  time  when  capital- 


208 


The  Rcf irrigation. 


ists,  on  their  system,  would  have  absorbed  both 
house  and  nione}^  :  that  is  when  '  the  house  had 
paid  for  itseUV  as  the  saying  is,  (meaniug  when  the 
buihlers  eau  legall}^  be  turued  out  of  doors  peuni- 
k\ss),  tlie  Governor  did  so,  too  but,  iustead  of  hand- 
ing the  house  to  capitalists,  as  would  havebeeu  the 
case,  had  he  issued  bonds  and  borrowed  the  mone}^ 
lie  declared  rhe  house,  '  public  '  property. 
What  right  had  he  to  coufiscate  private  property 
for  public  use,  without  equivalent  compensatiou  ? 
The  wealthiest  men  in  the  Parish  luid,  uot  ouly  re- 
fused to  contribute  towards  the  buikiing  of  the 
house,  but  had  persistcMl  iu  refusing  to  receive  the 
scripts,  because  the  niethotl  precluded  them  from 
specuhating  ou  the  same  and  interfered  with  the 
profits  they  realized  by  the  use  of  money  alone. 
Now,  by  making  the  house  public  property,  and 
appropriating  the  revenues  of  it  to  the  reduction  of 
taxes,  these  same  rich  men  became  the  largest  ben- 
eficiaries.   It  was  not  just. 

Your  committee  recommend  a  more  equitable  sys- 
tem, as  will  readily  be  learned  by  examining  the 
Constitution  and  regulations  of  tiie  plan.  In  it, 
those  alone,  who  contribute  work  or  materials  to 
improvements,  shall  be  the  beneficiaries  thereof  in 
perpetuity. 

We  will  only  add,  by  way  of  advice  that,  as  no 
people  ever  can  advance  in  wealtli  by  devoting  all 


The  Iivfonnation. 


209 


energy  in  producing  perishable  or  consumable  ar- 
ticles alone,  nor  yet  b}^  a  commerce  in  excess  of 
production,  we  recommend  that  this  association 
apply  all  the  labor,  which  can  possibly  be  s[)ared 
from  the  production  of  the  necessaries  of  life  and 
from  commerce,  to  permanent  or  fixed  impi-ove- 
ments.  These  tend  to  lessen  toil  and  increase  en- 
joyments. 

The  report  of  the  general  committe  was  favoi-a- 
bly  received  and  approved,  though  the  plan  of 
co-operation,  which  they  recommended  (as  in  the 
following  constitution),  was  not  at  once  put  in 
operation. 

A  few  years  afterwards,  an  oi'ganization  was 
formed  at  Kansas  City,  in  the  State  of  Missouri  ; 
but  failed  to  obtain  a  charter.  Subsequently  an- 
other experimental  organization  formed  at  Sedalia, 
in  the  same  State,  which  renewed  their  petition  for, 
and  obtained,  a  charter,  as  a  Beneficent  Associa- 
tion . 

We  give  herein  a    copy    of  the  petition  and 
charter,  which,  with  the  Supplimentary  Eegula- 
tions  following,  embodies  the  fundumental  princi- 
ples and  plan  of  operation  advised  b}^  said  com 
mittee. 

It  will  be  observed  that  the  committee  has  been 
dealing  solely  with  conditions  surrounding  us  :  with 
institutions  under  which  we  lived;  with  the  habits 


210 


The  Reformation. 


and  moral  sentiments  of  our  people  ;  with  facts  as 
they  existed.  They  wasted  no  time  in  exhuming 
past  conditions,  past  institutions  nor  past  methods 
of  exchanges  which  could  not  do  any  good.  Nor 
did  they  cast  reflections  upon  governments,  polit- 
ical parties  or  religious  doctrines  for  the  evils  then 
prevailing.  As  an  expert  general  in  front  of  the 
enemy,  they  dispassionatel}^  surveyed  the  situation 
and  moved  accordingly.  Most  of  the  Labor  leaders 
in  the  past  had  been  spending  time  and  talent  in 
invectives  against  real  or  supposed  enemies.  What 
good  had  come  out  of  such  polemics  and  negative 
policy  we  all  know.  Labor  had  been  losing  ground 
ever  since  the  contest  began.  The  committee  saw 
this  fact,  and,  hence  adopted  a  change  of  tactics. 
That  their  plan  was  the  proper  one  under  the  cir- 
cumstances, time  has  already  demonstrated.  No 
one  acquainted  with  the  success  of  the  Labor 
Exchange  Association,  doubts  now  that  the  work- 
ers are  on  the  road  to  liberty  and  affluence. 


THE  LABOR  EXCHANGE. 


PETITION. 

To  the  Circuit  Court  of  and  for  tlie  county  of  Pettis 
and  State  of  Missouri : 

We  the  undersigned,  citizens  of  the  United 
States,  having  associated  ourselves  by  articles  of 
agreement  for  benevolent  and  educational  purpo- 
ses, do  nov^  on  this  day  ,  A.  D.,  1889, 

appear  in  open  court  by  our  officers 

G.  B.  De  Bernardi,  President. 

J.  H.  Monsees,  Vice  President. 

E.  T.  Beherens,  Secretary. 

W.  F.  Sargent,  Accountant. 

John  L.  Lomasney,  Statistician. 

W.  T.  Cahill,  Pres.  Advisary  Board, 
and  submit  the  attached  Articles  of  Agreement, 
which  fully  and  clearly  set  forth  the  purposes  and 
scope  of  said  association,  and  pray  that  this  Honor- 
able Court  cause  a  decree  to  be  entered  of  record 
declaring  your  petitioners  a  body  corporate  and 
polite,  in  accordance  with  Article  X,of  Chapter  21, 
of  the  Revise  Statutes  of  Missouri. 

(211) 


212 


The  Reformation. 


ARTICLES  OF  AGREP:MENT. 

The  corporate  name  of  this  Association  shall  be 
the    LABOR  EXCHA^^GE/' 

The  office  shall  be  located  at  Sedalia,  Pettis  Co., 
Missonri. 

OBJECT  OF  THE  ASSOCIATION. 

First.  To  provide  employment  for  idle  labor,  hy 
facilitating  the  interchange  of  commodities  and 
services  among  the  associates  and  the  public. 

Second.  To  alleviate  the  suffering  incident  to, 
and  avert  the  social  dangers  which  may  arise  from, 
a  constantly  increasing  class  of  unemployed,  by 
furnishing  to  this  class  useful  occupation,  and  sav- 
ing the  wealth,  thus  produced,  for  the  use  and  ben- 
efit of  the  actual  producers  and  their  dependents. 

Third.  To  lighten  the  burden  of  charitable  in- 
stitutions by  establishing  one  self-sustaining. 

By  and  through  such  employment  of  idle  labor 
as  aforesaid,  this  Association  aims  to  furnish  food, 
clothing  and  the  comforts  of  a  home  to  tliose  thus 
employed,  establish  depots  for  mutual  exchange, 
operate  boarding  houses  for  the  purpose,  and  also 
provide  for  education,  the  elevation  of  character 
and  the  amenities  of  life  by  maintaining  schools 
and  other  places  of  instruction. 


77/ ('  Rv foniKii io n . 


218 


MP:ANS  HOAV  PROVIDED. 

FiKST.  Fees  and  dues  from  members,  as  may  be 
fixed  by  the  By-laws  of  the  Association. 

8p:cond.  Soliciting  for  and  receiving  contrii)utions 
of  any  and  all  kinds  of  means  necessai-y  to  carry 
out  the  objects  of  the  Association. 

MEMBERSHIP. 

Any  person,  male  or  female,  of  good  character, 
not  adicted  to  intemperate  or  immoral  habits,  who 
is  willing  to  engage  in  a  useful  (occupation  or  calling, 
or  to  aid  b}^  work  or  means  to  advance  the  objects 
herein  stated,  may  become  a  member  of  this 
Association,  and  be  entitled  to  the  benefits  of 
it,  under  such  rules  and  regulations  as  may  be  es- 
tablished by  the  same. 

The  Association  shall  have  full  power  to  enact 
such  rules  as  to  expel  a  disorderly  or  injurious 
member;  but  such  expulsion  shall  not  impair  any 
claims  which  such  expelled  member  ma}^,  at  the 
time,  possess,  or  thereafter  acquire,  against  the 
Association. 

PROPERTY  HOW  HELD. 

The  property  of  this  Association,  real  and  per- 
sonal, shall  not  under  any  circumstances  be  mort- 
gaged or  pledged. 

The  Association  shall  not  borrow  any  money. 


9 


214 


The  Reformation. 


shall  not  issue  any  interest  bearing  note  or  obliga- 
tion against  itself. 

DISTRIBUTION  OF  REVENUES. 

All  moneys  received  for  the  sale  of  goods,  hire 
of  labor  and  other  property,  the  execution  of  con- 
tracts, board  of  hands,  entry  fee  to  places  of  amuse- 
niant,  etc.,  shall  be  distributed  as  follows  : 

1st.  To  replenish  the  stock  of  goods  sold. 

2d.  To  keep  the  property  in  repair  and  to  re- 
store an}^  which  may  have  been  destroyed  by  ac- 
cidents. 

3d.  To  defray  the  expenses  of  administration 
economical ly  conducted . 

4th.  To  support  the  sick,  the  disabled  and  assist 
the  families  of  deceased  members. 

e5th.  To  maintain  schools,  especially  evening 
schools,  libraries  and  places  of  instruction  and 
amusement. 

6th.  To  extend  the  field  of  its  operations;  by  the 
acquisition  of  additional  means  for  the  employment 
of  idle  labor. 

OFFICERS. 

The  officers  of  this  Association  shall  consist  of 
President,  Vice  President,  Secretary,  Accountant, 
Statistician  and  as  many  more  officers  as  the  busi- 
ness of  the  Association  may  require. 


The  Reformalion. 


215 


The  duties  of  said  pi-iiicipal  officer  shall  be  those 
as  implied  by  their  several  names. 

The  distinction  of  sex  shall  not  be  a  bar  to  eligi- 
})ilit;y  to  any  office  ;  but  no  person  under  the  age  of 
21|shall  be  eligible  to  the  above  principle  offices,  nor 
to  the  Board  of  Trustees  as  hereinafter  provided. 

All  elections  shall  be  by  baUot  and  at  regular 
meetings  of  the  Association. 

The  time  and  place  of  meetings  shall  be  deter- 
mined by  the  Association. 

SALARIES,  WAGES,  VALUES,  ETC. 

The  salaries  of  officers  of  this  Association,  the 
wages  of  labor  employed,  the  exchangeable  value 
of  commodities  and  services  among  the  associates ; 
the  distribution  of  tools,  implements,  machinery 
and  materials  for  the  employment  of  labor,  as  well 
as  all  claims  for  preference  to  such  employment, 
and  all  other  matters  not  herein  specified  and  de- 
termined, shall  be  fixed  and  regulated  by  the  B3 - 
laws  of  the  Association. 

We,  whose  names  are  hereunto  attached  hereby 
agree  to  become  members  of  the 

LABOR  EXCHANGE 

in  accordance  with  the  terms  and  conditions  herein 
set  forth  and  for  the  objects  and  purposes  herein 
stated. 


216 


Tlie  Reformation. 


G.  B.  De  Beriiardi,  President,  Dresden,  Mo.;  J. 
H.  Monsees,  Vice  President,  Beaman,  Mo.;  E.  T. 
Beherens,  Secretary;  W.  F.  Sargent,  Acccountant; 
John  L.  Lomasney  Statistician,  Sedalia,  Mo. 

EXP^CUTIVE  BOARD. 

John  Goodfellow,  J,  G.  Harris  and  J.  B.  Hedges, 
Sedalia,  Mo. 

ADVISORY  BOARD. 

W.  F.  Cahill,  President,  Sedalia,  Mo. 

MANAGER  OF  STORE. 

W.  F.  Sargent,  Sedalia,  Mo. 


SUPPLEMENTARY  REGULATIONS. 


1st.  For  all  contributions  of  money,  goods,  work 
or  services^  the  Association  shall  issue  to  contribu- 
tors Certificates  of  deposit  or  checks  of  equal  value, 
which  certificates  and  checks  shall  not  bear  interest, 
nor  be  redeemable  in  legal  tender  money,  but  re- 
ceivable by  the  Association,  at  face  value,  in  pay- 
ment for  goods  purchased  from;  work  or  services 
obtained  through,  and  for  all  debts  and  dues  to  the 
same. 

2d.  Applicants  for  membership  shall  enter  into  a 
contract  with  the  Association  that  they  agree  to 
receive  the  above  Certificates  of  deposit  or  checks 
in  full  satisfaction  for  their  work  and  contributions, 
and  relinquish  all  other  claims  and  liens  against 
the  same. 

3d.  The  Association  will  hold  merchandise  for 
consumption  or  use  subject  to  the  redemption  of 
its  checks,  reserving,  however,  the  right  to  sell  it 
or  exchange  it  for  money  and  equivalent  commo- 
dities. 

4th.  Real  estate,  machinery  implements  and 
tools  in  operation  or  use,  and  all  materials  set  apart 

(217) 


218 


TJie  Reformation. 


for  the  employment  of  labor  shall  be  held  inalien- 
ably for  that  object. 

5th.  Should  any  real  estate,  machinery,  imple- 
ments, etc.,  become  superfluous  for  said  object,  the 
same  may  be  sold  or  exchanged.  But  in  such  case, 
it  will  require  a  two  third  vote  of  the  members  in- 
terested therein. 

6tli.  The  Association  may  receive  "  Special  De- 
positsof  real  estate,  subject  to  withdrawal,  in 
kind,  by  depositors  or  their  assignees.  The  value 
of  said  real  estate  shall  be  ascertained  and  deter- 
mined by  appraisers,  selected  one  half  by  the  As- 
sociation, and  one  half  by  the  depositoi'S  thereof,  to 
whom  shall  be  added  an  odd  number  of  experts, 
selected  by  the  said  appraisers. 

To  such  depositors  the  Association  shall  issue 
special  Certificates,  which  may,  by  them  be  located, 
and  the  identical  propert}^  or  equivalent  real  es- 
tate, withdrawn  at  any  place  in  the  keeping  of  the 
Association . 

The  Association  shall  pay  no  rent  on  such  special 
deposits. 

7th.  The  interest  of  members  in  the  benefits  of 
the  Association,  over  and  above  the  redemption  of 
its  certificates  of  deposits  and  checks,  shall  be  in 
the  proportion  of  actual  deposits  (of  which  an  ac- 
count shall  be  kept  with  each  individual  member), 
multiplied  by  the  time  said  deposits  liave  remained 


The  Reformation. 


219 


in  the  Association.  Thus  $1000  ten  years,  shall 
equal  $10000  one  year. 

ORGANIZATION. 

8tli.  This  Association  shall  consist  of  a  Central,  or 
General  Office,  and  local  Branches,  operating  under 
a  Dispensation  or  Charter,  granted  by  the  Central 
office,  and  organized  in  such  a  manner  and  under 
such  By-laws  as  may  be  determined  by  the  mem- 
bership thereof,  in  accordance  to  the  constitution 
an  i  objects  of  the  Association. 

9th.  It  shall  be  tlie  function  of  the  Central  office 
to  provide  for  the  original  issue  of  blank  Certifi- 
cates and  checks;  to  harmonize  co-operation,  adjust 
difficulties  and  manage  all  enterprises  in  which  all 
the  Branches  are  interested. 

10th.  Branch  Associations  ma}'  obtain  supplies 
of  blank  Certificates  and  checks,  at  cost,  by  depos- 
iting material  equivalents  for  the  same,  or  by  giving 
approved  security  for  their  return. 

11th.  All  certificates  of  deposit  and  checks,  re- 
ceived by  the  central  office  or  branches,  in  payment 
for  goods,  services  or  dues,  shall  be  cancelled,  and 
sent  to  the  Centi-al  Accountant. 

12th.  The  central  and  Branch  offices  shall,  ex- 
officio  "  constitute  the  Board  of  Managers. 

ADVISORY  BOARD. 

18th.  There  shall  be  elected,  by  a  majority  vote 


220 


The  Eeforniation. 


of  all  the  members,  a  Central  Advisory  Board,  com- 
posed of  five  or  more  persons,  whose  term  of  office 
shall  originally  be  one,  two,  three,  four  and  five 
years,  so  that  the  term  of  one  fifth  of  said  Board 
may  expire  every  year,  and  the  place,  or  places,  be 
successively  filled,  at  the  annual  general  election 
for  the  term  of  five  years. 

The  functions  of  this  Board  shall  be  the  location 
and  extent  of  permanent  or  fixed  improvements 
and  productive  industries,  such  as  buildings,  facto- 
ries, mines,  shops,  etc.,  in  order  that  the  same  may 
not  conflict  with  one  another,  by  competition  on  the 
markets,  or  become  useless  by  reason  of  excess  or 
improp^.r  location. 

No  permanent  improvements  or  productive 
plants  shall  be  undertaken,  in  the  name  of  the 
i^ssociation,  without  permit  from  the  Advisory 
Board. 

14th.  All  projects  for  the  advancement  of  the 
welfare  and  prosperity  of  the  Association,  may 
originate  in  any  member  thereof. 

Said  project  shall  be  presented  to  the  Local 
Branch,  of  which  the  originator  is  a  member.  If 
approved  b}^  a  majority  vote  of  said  Branch,  the 
project  shall  be  put  before  all  Branches  interested 
therein,  and,  if  again  approved  b}^  a  majority  vote 
of  the  same,  the  project  shall  form  part  of  the 


The  Eeformaiion. 


221 


rules,  regulations,  methods  or  enterprises  of  all 
the  Eranclies  having  voted  thereon. 

DIVISION  OF  EMPLOYMENTS. 

15th.  The  industrial  and  economical  operations 
of  the  Association  shall  be  devided  into  three  gen- 
eral and  two  auxiliary  departments. 

GENERAL  DEPARTMENTS. 

1st.  Department  of  Production. 
2d.  Department  of  Distribution. 
3d.  Department  of  Consumption. 

AUXILIARY  DEPARTMENTS. 

1st.  Department  of  Statistics. 

2d.  Department  of  Accounts. 

Each  of  these  departments  may  be  subdivided 
into  as  many  groups  as  may  be  required. 

Each  special  trade,  profession  or  calling,  shall 
liave  the  control  of  its  own  branch  of  industry, 
subject  onl}^  to  the  General  Board  in  their  respec- 
tive relation  to  other  departments  and  industries. 

Each  trade  and  profession  shall  elect  their  own 
special  officers. 

16th.  The  Department  of  Production  "  shall 
iiave  charge  of  tools,  utensils,  implements,  ma- 
chiner}^,  shops,  mills,  factories,  foundries,  farms 


222 


The  Reformation. 


mines,  brick  ^^ards,  quarries,  etc..  and  all  materials 
necessary  to  the  production  of  wealth. 

This  department  shall  have  authority  to  contract 
for  private,  corporate  and  public  w^orks,  and,  by 
these  means,  and  the  enterprises  of  the  Association, 
endeavor  to  keep  constantly  employed  a  well 
equipped  industrial  body  of  men  and  women,  in 
the  production  of  wealth,  especially  of  a  permanent 
character,  and  thus  promote  the  general  welfare. 

Each  Local  Branch  interested  in  any  contract  or 
enterprise  of  this  Department,  shall  be  entitled  to 
a  proportionate  quota  of  volunteer  workers,  contri- 
bution of  materials,  and  to  a  participation  'in  the 
benefits  or  losses  of  the  enterprise,  in  proportion  to 
labor  and  materials  furnished  therein. 

All  the  benefits  or  losses  accruing  from  the  en- 
terprises, of  the  Central  Association  shall  be  borne 
by  all  the  members. 

17th.  "  The  Department  of  Distribution,"  em- 
bracing commerce  and  transportation,  shall  have 
charge  of  stores,  warehouses,  elevators,  and  all 
means  for  the  storage  and  preservation  of  merchan- 
dise ;  all  means  for  transporting,  handling,  weigh- 
ing, measuring  and  distributing  the  same. 

18th.  -'The  Department  of  Consumption  shall 
have  control  of  co-operative  hotels,  boarding  houses, 
hospitals,  schools,  libraries  and  places  of  amuse- 
ment comfort  and  education. 


TJie  IlefoniKition.  223 


19th.  The  Department  of  Statistics  "  shall  have 
charge  of  the  collection  and  distribution  of  Statis- 
tics, pi-esenting  as  full  an  exhibit,  as  can  he  ob- 
tained, of  the  condition  and  wants  of  tlie  Asso- 
ciation. 

20th.  "  The  Department  of  Accounts,^'  shall 
manage  the  issue,  clearance  and  cancellation  of 
Certificates  and  Checks.  These  issues  shall  c(ni- 
sist  of 

1st.  A  Uniform  Coupon  Labor  Check,  in  book 
form,  of  convenient  denominations,  from  one  dollar 
to  one  hundred.  Each  of  these  books  shall  contain 
no  less  than  the  amount  of  one  hundi-ed  dollars  in 
said  assorted  coupons. 

2d.  A  Uniform  Coupon  Loan  Check,  in  book  form, 
of  various  denominations.  Each  book  shall  con- 
tain no  less  than  ten  dollars  \\\  c()upons  of  from 
one  quarter  of  a  dollar  to  ten  dollars. 

3d.  A  Uniform  Certificate  of  Deposit,  of  various 
denominations,  to  be  handed  to  depositors  of  mer- 
chandise or  labor. 

Each  of  these  three  issues  sliall  be  dated  and 
numbered  co-ordinately,  beginning  and  ending  with 
each  year.  Thus  each  year's  issue  shall  begin 
with  IN'o.  One. 

No  issue  shall  be  redeemable  in  legal  tender 
money,  but  receivable  as  heretofore  provided. 

All  details  regarding  the  issue,  clearing,  and 


224 


The  Beformation. 


cancelling  the  above  issues,  and  other  matters  ap- 
pertaining to  the  management  of  the  same,  and 
the  security  and  safety  of  the  hoklers  thereof, 
shall  be  provided  as  circumstance  may  indicate. 


THE  EXCHANGE. 


IN  THP]  YEAR  1900. 

The  Organization  at  Sedalia  proved  "  the  cloud 
no  bigger  than  a  man's  hand  "  which  brought  about 
tlie  industrial  Eeformation  in  the  colony. 

The  Labor  Exchange  began  operations  without 
money  and  without  stock.  It  opened  its  hands  to 
receive  deposits  of  merchandise  and  labor,  at  mar- 
ket price,  and  issued  Certificates  of  Deposit  for  the 
same.  It  also  acted  as  intermediate  agent  between 
employers  and  employes,  free  of  charge.  At  first, 
it  made  but  slow  progress;  but  soon  it  drew  the 
attention  of  those  proscribed  pilgrims  from  the  la- 
bor ranks,  latel}^  called  '  tramps.'  These  w^ere  fol- 
lowed by  more  fortunate  mechanics  and  laborers 
as  fast  as  scarcit}^  of  moiiey  cast  them  out  of  em- 
ployment. Farmers,  who  could  not  dispose  of 
products,  except  at  ruinous  sacrifices,  began  to  de- 
})Osit  the  same  in  the  care  of  the  Exchange,  and 
accepted  its  Certificates.  As  the  stock  of  goods  in- 
creased, so  did  ^credit  '  in  its  checks.  Shoemakers, 
tailors,  barbers,  watchmakers  and  all  such  trades, 

(225) 


226 


The  Reformat  toil. 


as  require  little  or  no  outlay  for  tools  and  materi- 
als, soon  accepted  the  Labor  Exchange  checks  in 
payment  for  their  work.  As  soon  as  a  small  fund 
could  be  collected  in  money  to  purchase  materials, 
the  female  members  were  set  to  work,  at  their 
homes,  making  overalls  and  underware.  These 
they  placed  in  the  stores  of  the  Association  for 
sale,  or  exchange  for  other  products.  Small  indus- 
tries, unable  to  compete  with  large  factories,  undei* 
the  money  system,  fell  into  the  Association.  Small 
merchants,  no  longer  able  to  stand  the  heavy  rents 
of  business  centers,  and  look  at  their  former  cus- 
tomers turning  to  the  large  establishment,  just 
opened  by  a  company  of  capitalists,  consigned 
their  goods  to  the  Labor  Exchange,  thus  averting 
rent,  expenses  and  bankruptcy.  Brickyards,  quar- 
ries, tile  factories  and  other  productive  plants,  about 
to  discharge  their  employes,  from  lack  of  a  market 
for  their  products,  were  kept  in  operation  by  the 
workmen,  who  had  joined  the  Labor  Exchange, 
accepting  the  product  of  their  own  work  in  pa}^- 
ment  for  their  wages.  These  products  were  then 
deposited  in  the  keeping  of  the  Exchange  for  its 
checks.  The  same  materials  were  used  to  employ 
idle  mechanics  to  put  up  buildings,  or  under  drain 
fields.  Thus,  by  the  ministration  of  the  Labor 
Exchange,  industry  and  commerce  were  kept  in 
motion,  when  deficiency  of  money  would  have  par- 


The  Reformation. 


227 


al3^zed  both.  Thus  the  Labor  Exchange  lias  be- 
come an  immense  repositoiy  of  almost  everythino- 
that  the  world  produces,  and  an  immense  instrumen- 
tality for  the  employment  of  Labor. 

We  could  not  convey  to  the  reader  a  better  knowl- 
(Hlge  of  the  "  modus  operandi  "  of  this  organization 
than  by  giving  the 

EXPERIENCE  OF  MEMBERS. 

A  MECHANIC  said :  ''I  had  belonged  to  almost 
ever}'  Labor  Association,  besides  my  own  Union, 
and  we  had  discussed  the  problem,  I  thought,  from 
every  point  of  view,  and  'resolved'  everything 
imaginable.  I  had  taken  active  part  in  four  strikes, 
one  of  which  proved  successful,  and  the  other  three 
disastrous.  But  successful  or  disastrous,  I  saw 
that  we,  workers,  were  always  losers,  and  were 
alienating  from  us,  public  opinion,  especially  of 
farmers  and  merchants,  in  consequence  of  losses, 
these  classes  were  subjected  to,  by  the  stoppage  of 
business.  Hearing  of  the  Labor  Exchange  and 
feeling  an  especial  interest  in  the  feature  that  it 
professed  to  furnish  employment,  our  Union  appro- 
priated ten  dollars  to  defray  the  expenses  of  a  lec- 
turer and  organizer.  The  lecturer  came.  He 
wasted  no  time  in  depicting  the  deplorable  condi- 
tion of  labor,  the  cruelty  of  employers,  nor  the 
wrongs  of  government ;  but  straightway  explained 


228 


The  Reformation. 


to  US  the  objects  of  the  Labor  Exchange,  and  the 
ways  of  attaining  those  objects.  We  felt  convinced 
that  the  Exchange  was  the  thing,  that  we  had  been 
looking  for,  and  hence,  by  a  large  majority,  voted 
to  establish  a  Branch  in  our  city.  At  ever}^  meet- 
ing, we  made  a  collection,  and  each  voluntary  con- 
tributor received  a  Certificate  of  Deposit.  The 
money  was  deposited  in  a  savings  bank,  and  served 
as  a  basis  for  the  validity  of  the  checks. 

These  checks  soon  amounted  to  a  considerable 
sum,  and  the  members  used  them  in  payment  for 
services  and  trade  among  themselves. 

In  less  than  eighteen  months,  we  had  on  deposit 
ten  thousand  dollars,  and,  of  course,  the  same 
amount  of  checks  in  the  hands  of  the  members, 
which  performed  a  much  larger  amount  of  busi- 
ness, not  only  among  ourselves,  but  with  outsiders 
also.  We  now  decided  to  withdraw  our  deposit 
from  the  bank,  purchase  a  lot  in  the  central  part  of 
the  city,  and  put  a  building  thereon.  We  paid  for 
the  lot  and  part  of  the  materials,  in  money,  and  paid 
the  workmen  in  Labor  Checks.  This  proved  a 
tripple  benefit  to  us.  It  employed  our  mechanics, 
gave  us  a  home  to  meet  and  stores  to  rent,  and  put 
over  twenty  thousand  Labor  Checks  in  our  hands, 
to  do  business  with.  Our  meetings  were  always 
open,  our  affairs  well  known,  and  our  number  kept 
increasing. 


77/ ('  RcfonDdfton. 


Wl)at  came  out  of  that  small  beginning  you  all 
see.  The  Association  owns,  in  the  city  aloius  over 
half  a  million  dollars  worth  of  property.  It  is  run- 
ning a  number  of  industries,  and  none  of  its  mem- 
bers need  fear  to  incur  the  displeasure  of  an  em- 
l)loyer  and  lose  their  bread. 

A  BRrCKBUKNKF. 

Ten  of  us,"  said  he,  working  at  a  brick  yard, 
expected  soon  to  be  discharged,  and  had  no  idea 
where  to  find  another  job.  Times  were  hard  and 
bricks  not  in  demand.  One  morning  three  farmers 
rode  up  to  the  yard,  and  wished  us  to  join  the  La- 
bor Exchange.  We  laughed  at  the  idea.  ^'  What 
good  would  the  Labor  Exchange  do  us?  We  had 
nothing  to  exchange,  and,  besides,  we  did  not  ex- 
pect to  be  there  long,"  we  said.  Where  are  you 
going?"  asked  one  of  the  farmers.  "  To  tramp," 
we  replied.  Is  there  not  plent}^  of  work  here?" 
he  asked  again.  ]S"o,"  we  answered,  not  after 
this  week."  What  is  the  matter?  is  the  town 
finished  ?"  he  querried.  Finished  or  not  finished, 
no  one  wants  bricks,"  we  replied.  Look  liere, 
gentlemen,"  said  the  farmer,  there  is  no  necessity 
of  stopping  brick-burning  here.  The  town  is  liard- 
commenced  and,  there  will  be  a  heavy  demand 
for  bricks  shortly,  if  not  now.  Join  the  Exchange, 
and  we  will  see  whether  we  cannot  arrange  so  that 
you  ma\^  continue  at  work.  If  members  of  our  Asso- 


230 


Tlie  Reformation. 


ciatioii,  3^ou  could  take  l)ricks  in  payment  for  wages. 
The  Exchange  would  take  the  bricks  from  you 
and  give  you  its  checks."  We  had  to  laugh  heartily, 
thinking  the  granger  was  somewhat  cracked.  ^' What 
good  would  your  checks  do  us  ?"  we  asked*  They 
will  prove  that  you  hold  that  much  property  in  the 
Association,"  answered  the  farmer.  "  Is  that  not 
better  than  going  into  idleness  ?"  he  continued.  It 
sounded  reasonable.  He  then  explained  to  us  the 
workings  of  tlie  Labor  Exchange.  We  became 
convinced,  went  with  tlie  farmers  to  see  the  pro- 
prietor of  the  yard,  to  whom  they  also  explained 
the  method  of  business  of  the  Association.  He 
agreed  to  continue  us  at  work,  if  we  would  take 
bricks  for  our  wages.  At  the  same  time  the  farm- 
ers agreed  to  furnish  wood  to  burn  the  bricks  and 
receive  payment  in  bricks  also. 

The  same  bricks  are  now  doing  duty  in  the  finest 
four  story  business  building  in  the  center  of  the 
town,  and  were  put  there  by  brick-layers  who, 
without  the  Labor  Exchange,  would  have  spent 
that  time  tramping.  We  and  the  brick-layers  have 
been  amply  paid  for  our  work,  and  still  hold,  in 
that  building,  the  interest  that  capitalists  would 
hold,  if  it  had  been  built  by  their  money  instead 
of  the  Labor  Exchange  check. 

A  FARMER. 

One  day."  he  said,      I  was  fixing  the  fence 


The  Refortnntio7i. 


2?A 


around  a  barn  lot,  when  two  gentlemen  roile  up,  and, 
after  the  usual  salutionn  about  the  weather,  fine 
country,  etc.,  one  of  them  asked  wliv  I  did  not 
build  a  barn  to  shelter  my  stock  and  forage?'' 
''Lack  of  means,"  I  replied.  *'  You  mean  lack  of 
money,"  he  retorted,  for  I  see  that  you  luivc^ 
plenty  of  means  on  your  farm."  Yes,  I  mean 
lack  of  money,"  I  answered.  Would  it  not  pay 
you  to  borrow  tl>e  moncN'  ?  Is  not  your  loss  in  for- 
age, the  condition  of  your  stock,  time  in  feeding, 
etc.,  heavier  than  the  interest  on  the  loan  ?"  he 
asked.  I  do  not  intend  to  })lace  a  mortgage  on 
my  farm  unless  compelled  jto  by  sickness,"  I  re- 
plied. I  have  seen  too  many  fai'mers  driven 
away  from  their  home  b}'  small  mortgages."  What 
would  you  have  to  pay  for  money  hire?"  continued 
the  man.  Eight  per  cent,"  I  answered.  '*  That 
is  very  heavy,"  he  said.  The  general  wealth  of 
the  nation,  according  to  the  decennial  inventories, 
grows  only  at  the  rate  of  3^  per  cent  per  annum, 
and,  whoever  pays  more  than  that,  is  doomed  to 
ruin.  Look  here,  friend,"  he  then  explained, 
We  are  mechanics,  and  belong  to  the  Labor  Ex- 
change Association.  We  heard  that  you  needed 
work  in  our  line,  and  came  to  see,  whether  we 
could  not  persuade  you  to  join  said  Association, 
and  have  your  barn  built  through  the  same.  The 
Association  will  lend  you  it!»  checks  at  one  percent. 


232 


The  Reformation. 


or  just  eiiougli  to  cover  expense  of  issue  and  raan- 
ageraent.  It  will  give  you  five  or  more  years  time 
to  return  the  checks,  and  the  choice  to  pay  in  mon- 
ey or  in  products,  at  market  prices."  "  How  is 
this?"  I  inquired.  They  explained  to  me  in  full 
the  workings  of  the  Labor  Exchange.  I  felt  con- 
vinced that  I  could  well  afford  to  pay  one  per  cent 
rather  than  luiffer  the  loss  consequent  on  keeping 
my  forage  and  feeding  my  stock  out  of  doors.  So 
I  joined  the  Association,  boi'rowed  $1500  in  checks, 
and  had  my  barn  built,  and  a  good  one  it  was  for 
the  money,  because  the  Labor  Exchange  guaran- 
tees its  work.  Subsequently,  whenever  I  had  pro- 
duce to  spare  from  my  ordinary  expenses,  J  took  it 
to  the  Labor  Exchange  stores.  In  a  short  time  my 
debt  was  paid.  I  feel  convinced,  friends,  that  if 
such  organization  had  come  into  existence  3^ears 
ago,  thousands  of  forms,  carried  away  b}^  mortga- 
ges, would  now  be  the  happy  homes  of  the  farmers 
wlio  improved  them,  and  that  thousands  of  me- 
chanics, who  were  forced  to  leave  their  families  in 
destitution,  and  tramp  the  colon}'  in  search  of  work, 
would  have  been  building  barnes  on  these  farms 
and  supporting  their  families  in  abundance  out  of 
the  products,  which  were  wasted  in  interest  to 
money-lenders.  Thank  God,  a  way  has  been  found 
out  of  the  grasp  of  the  money  power.  Mv 
prayer  is  that  the  Labor  Exchange  may,  not  only 


The  llvfonnation. 


233 


spread  over  our  colony,  but  over  the  whole  world. 
A  carpenter's  story. 

Hard  times,  no  work  and  poverty  forced  me  to 
leave  wife  and  three  children,  almost  destitute,  and 
ti-amp  westward  in  quest  of  employment.  The 
Lord  knows  what  hardships,  wants  and  humilia- 
tions I  endured,  but  finally  I  reached  a  thriving 
city  on  tlie  Missouri  river,  where  my  hopes  for 
employment  were  brightened  b}^  the  sight  of  a 
number  of  improvements  in  process  of  execution. 
Still,  wherever  I  applied  for  work,  I  found  every 
place  filled  and  many,  besides  myself,  yet  ont  in 
the  cold. 

One  day,  when  my  cup  of  sorrow  was  overflowing, 
by  the  reading  of  a  letter  from  home,  asking  for 
money  to  pay  the  rent  and  purchase  provisions,  as 
the  landlord  was  threatening  to  turn  them  out  of 
door,  and  the  grocery  man  had  refused  to  credit 
them  any  longer,  a  comrade  advised  me  to  apply 
to  the  Labor  Exchange.  "  What  is  the  Labor  Ex- 
change?'' I  asked  him.  He  said  that  it  was  an 
Association  of  workmen  intended  for  the  employ- 
ment of  idle  labor.  By  direction,  I  went  to  the 
office  of  the  Labor  Exchange,  and  a  small  concern 
it  appeared  to  me.  Is  it  true,"  I  asked,  "  that 
you  will  help  a  fellow  to  find  work?"  That  is 
our  principal  object,"  answered  the  Secretary,  and 


234 


The  Reformation. 


asked  wiiat  ray  trade  was.  Carpenter,"  I  an- 
swered. The  Secretary  opened  a  book,  laying  on 
the  table,  and  found  that  he  had  no  application  for 
carpenters  at  the  time.  But,  if  you  fail  to  find 
employment,"  he  kindly  added,  call  again,  for 
we  may  have  an  application  at  any  time.  What 
is  your  charge?"  I  asked.  ''We  do  not  charge 
applicants,"  he  answered.  ''  Were  we  to  charge 
anything,  man}^  very  poor  workmen  and  women 
would  not  be  able  to  apply,  and  thus  we  would  not 
be  enabled  to  assist  the  very  ones,  who  need  assist- 
ance most.  This  Association  its  intended  to  add, 
if  possible,  to  the  means  of  working  people  and  not 
take  away  part  of  what  little  they  may  have."  I 
thanked  him  for  his  kindness  and  left  in  search  of 
work.  Several  times  thereafter  I  came  to  the  office 
of  the  Labor  Exchange j  to  inquire  what  prospect. 
At  last  the  Secretary  informed  me  that  he  had 
found  me  a  good  job.  A  man  had  taken  a  contract 
to  put  up  a  large  building,  needed  a  number  of 
carpenters,  applied  to  the  office  of  the  Labor  Ex- 
change, he  said,     and  we  gave  him  your  name." 

But,"  he  added,  'Hhe  contractor  will  not  begin 
work  for  a  couple  of  weeks,  hence  we  desire  to  know^ 
whether  you  will  accept  the  job  or  not." 

After  a  moment  consideration,  I  replied  in  the 
affirmative.  It  had  proven  so  hard  to  find  a  job, 
that  I  could  not  afford  to  lose  this,  even  if  I  had  to 


The  Eeformalion. 


235 


wait  two  weeks  for  it.  Tlie  moment  I  accepted  the 
Job,  the  secretary  asked  me  wliat  I  intended  to  do 
in  the  interval,  while  waiting.  I  don't  see  what 
else  I  can  do  but  walk  the  streets  of  the  city  for 
work,  as  I  have  been  doing  for  the  last  three  weeks," 
I  answered.  "  if  so,"  rejoined  the  Secretar}^  our 
Association  will  employ  you  these  two  weeks."  "  I 
am  glad  to  hear  it,"  I  said,  and  what  wages  does 
your  Association  pay?"  We  do  not  pay  at  all," 
answered  the  Secretary.  We  are  not  a  money 
institution,  and  do  not  deal  in  money."  This  sur- 
prised me  and  inspired  me  with  fear  that  the  kind- 
ness of  the  Secretary  to  find  me  employment  gra- 
tuitously was,  perhaps,  but  a  scheme  to  get  double 
pay  in  gratuitous  labor  ;  hence  I  boldly  expressed 
my  opinion  by  the  pointed  question  :  You  do 
not  expect  a  poor  fellow  like  me  to  work  for  you 
two  weeks  for  nothing,  do  you  ?"  "  Far  from  it," 
answered  the  SecretaiT,  we  expect  you  to  get 
higher  wages  than  yow  ever  got  before."  How 
so?"  I  asked,  you  said  that  you  do  not  pay  at  all, 
and  now  assert  that  I  will  get  higher  wages  than 
I  ever  got.  Will  you  please  explain  to  me  tlie 
puzzle."  I  will  do  so  willingly,"  replied  the  Sec- 
retary. We  are  an  Association  of  workingmen 
and  women,  not  capitalists.  We  have  plenty  of 
work,  but  no  money  and,  therefore,  cannot  pay 
money.    For  this  reason,  knowing  that  men  need 


236 


The  Reformation. 


money  to  pay  board,  rent,  etc.,  we  do  all  in  onr 
power  to  first  find  applicants,  whether  members  of 
our  Association  or  not,  employment,  where  they 
can  obtain  money-wages,  but,  when  a  man  is  out  of 
employment,  and  will  work  for  the  Association,  we 
can  only  give  him,  and  do  give  him,  the  whole  of 
his  own  work  in  payment.  You  know, friend,  that 
no  contractor  can  aiford  to  pay  as  much,  for  he 
must  realize  some  profits  out  of  his  employes. 
This  we  accomplish  by  meanfe  of  a  Labor  check,  or 
Certificate  of  Deposit,  which  represents  the  intei*- 
est  or  property  that  each  worker  or  contributor 
holds  in  the  "  fixed  wealth  in  the  hands  of  the 
Association.  Just  now  the  Association  has  pur- 
chased a  lot  and  paid  for  the  same  in  checks,  indi- 
cating that  the  former  owner  of  the  lot  holds  the 
value  of  the  lot  in  the  Association.  We  paid  for 
digging  the  cellar  in  checks.  We  had  the  founda- 
tion laid  in  the  same  manner,  by  men,  who  like 
you,  were  out  of  employment,  also,  we  succeeded 
in  buying  the  lumber  with  checks,  and  now  we  are 
ready  to  employ  idle  carpenters  to  put  up  the  build- 
ing, if  they  choose  to  do  so  and  accept  checks  in 
payment,  at  the  rate  of  wages  paid  on  the  market, 
in  money.''  "  What  use  will  your  checks  be  to 
me?"  I  asked.  Could  I  pay  my  board  bill  with 
them  ?"  May  be  not,"  answered  the  Secretary, 
and  as  before  said,  we  tried  to  get  you  a  job  where 


Tlw  Rcfornutlion. 


237 


you  can  get  money  waoes.*'  "  But,  fri(Mi(l.  if  you 
had  no  money  to  pay  your  board  bill,  any  landlord 
would  sooner  board  you,  if  you  had  an  interest  in  a 
house  here,  than  if  you  did  nothaveit.  The  build- 
ing, 3^ou  help  to  put  up,  will  be  sureh^  worth  tln^ 
materials  and  labor  bestowed  upon  it,  and  if  tlioscs 
who  bestowed  the  materials  and  labor  on  it,  own 
the  building,  in  tlie  proportion  of  their  several  con- 
tributions,  they  are  certainly  the  owners  of  the 
whole  the}^  contributed.  Diose  who  contributed 
materials  will  be  bettered  by  the  better  position  of 
said  materials,  and  those  who  contributed  labor,  if 
idle,  will  be  the  gainers  of  the  whole  interest  in  it.'' 
I  decided  to  go  to  work.  I  would  be  idle  anyhow, 
I  reasoned  within  myself,  and  at  the  end  of  the 
two  weeks  the  Association  paid  me  $30  in  Labor 
Checks.  When  the  Secretary  paid  me  the  Checks, 
he  invited  me  to  join  the  Labor  Exchange.  The 
cost  was  insignificant,  he  said,  and  assured  me  that 
T  would  find  it  profitable.  I  did  so,  paid  my  small 
fee  in  Labor  Checks  and  left  the  place,  to  go  to  my 
job.    Finally  I  left  the  city  also. 

Years  passed,  during  which  the  Labor  Exchange 
spread  in  many  towns  and  cities  of  the  West,  and, 
as  I  found  afterward,  had  become  a  wealth}^  insti- 
tution. Several  times,  in  my  travels,  I  came  in 
contact  with  the  Association,  obtained  their  assist- 
ance to  procure  employment,  and  w^orked  for  the 


238 


The  Reformation. 


same,  on  several  occasions,  to  the  amonnt,  in  all, 
of  $120,  as  per  Checks  in  hand,  on  which  however, 
I  must  confess,  I  did  not  set  full  value. 

Finally  I  resolved  to  move  West  with  m}^  famil}^ 
On  arrival  at  the  city  of  our  destination,  we  search- 
ed the  city  for  a  house  to  rent,  and  found  one,  in 
size  and  location,  suitable  to  my  wife.  AVe  inquir- 
ed as  to  the  owner  of  the  house  and  were  told  that 
it  belonged  to  the  Labor  Exchange  Association.  I 
told  my  wife  that  I  knew  that  Association,  in  fact, 
that  I  belonged  to  it,  that  I  had  worked  for  it  on 
several  occasions,  and  different  places,  when  acci- 
dentally out  of  employment.  We  went  to  the  of- 
fice of  the  Exchange,  which  was  now  quite  a  diff- 
erent tiling  from  the  office  that  I  had  at  first  entered 
into  a  few  3^ear/,  before.  We  asked  what  the  rent 
on  the  house  was  ;  were  told  ten  dollars  a  month. 
We  rented  it  and  moved  into  it. 

At  the  expiration  of  the  first  month,  I  went  to 
pay  the  rent.  Before  doing  so,  I  stated  to  the  Sec- 
retary that  I  had  'money'  to  pa}^  the  rent,  but  that 
I  was  a  member  of  his  Association  ;  stated  where  I 
had  joined  it,  tiiat  I  had  worked  for  it  several 
times  and  different  places,  and  held  $120  of  its 
Checks.  Now  I  desired  to  know  whether  I  could 
not  pay  my  rent  with  said  Checks.  If  so,  I  could 
save  my  money  for  purposes,  where  these  Checks 
were  not  available.    "  Certainly,"  replied  the  Sec- 


Tlic  Rcfornuiiioii. 


retar}^  at  once.  The  Checks  are  receivabl(i  by 
the  Association,  at  tlieir  face  value,  for  iiu^rcthniHlise, 
work  and  all  debts  and  dues  to  the  sanie,  wherever  it 
has  a  Brancli.  You  could  have  seen  this  by  read- 
ing the  inscription  on  the  Check  itself.  Then  ad- 
ded that  the  Checks  of  the  Association  were  virtu- 
ally worth  'more'  than  '  ordinary  money.'  This 
latter  assertion,  viz  :  that  the  Labor  Checks  wen^ 
better  than  money,  I  could  not  comprehend,  nor  did 
I,  at  the  time,  believe.  I  paid  our  rent  and  left 
the  office. 

These  payments  in  Checks  I  continued  monthly, 
until,  at  the  end  of  one  year,  1  had  exhausted  the 
amount  in  hand.  I  felt  glad  that  finally  I  had 
found  use  for  the  Checks,  on  which,  to  tell  the 
truth,  I  had  never,  as  I  said,  placed  much  value, 
never  having  been  located  at  a  place  where  the  As- 
sociation had  stores  or  houses  to  rent!  Now," 
said  I  to  the  Secretar}^  when  I  had  paid  my  last 
Check,  I  am  pleased  w^ith  your  system  of  doing 
business,  as  your  Checks  came  in  good  play,  I 
made  these  Checks  when  my  time  would  have  been 
lost  in  idleness,  and  now  they  saved  me  their  full 
value  in  money.  So  I  added,  when  idle,  I  shall  be 
ready  to  work  for  you  again."  AVe  are  grateful 
that  you  are  pleased  with  the  Association  and  its 
business  method,  friend,"  said  the  Secretary,  ''but 
you  are  mistaken  when  you  say  that  the  Labor 


240 


TJie  Reformation. 


Checks  are  onh^  worth  as  much  as  ordinary  money. 
They  are  worth  to  yon,  and  to  every  other  member, 
many  times  more  tlian  money.''  How  can  that 
be?''  I  asked.  ''You  took  tlie  Checks  in  payment 
for  the  rent  only  dollar  for  dollar.  I  had  $120,  and 
they  paid  $120  of  rent.  Where  is  the  better  or  the 
more  to  come  from?"  Here  is  where  the  better  of 
the  Check  over  money  is,"  explained  the  Secretary. 

If  you  had  worked  for  a  capitalist,  and  received 
$120  wages  in  money,  then  rented  a  house  from  the 
same  capitalist  and  paid  him  S120  in  rent,  would 
you  have  any  more  interest  in  the  property  of  that 
capitalist?"  '-Of  course  not,"  I  replied.  ''You 
worked  for  this  Association  ;  we  paid  you  the  $120 
in  wages  ;  we  paid  the  rate  of  wages  in  money  at 
the  time  and  place  you  worked,  then  we  rented  you 
a  house  and  charged  no  niore  than  the  capitalist 
would  have  charged  you  for  a  like  house,  and  can- 
celled all  your  $120  Checks.  Now  what  interest 
have  you  left  in  this  Association?"  "  [NTo  more  I 
su}>pose,  than  I  would  have  in  the  case  of  the  cap- 
italist," I  answered.  "  You  have  an  interest  of 
$120  in  the  permanent  wealth  of  the  Association." 
stated  the  Secretar3\  "  The  joint  work  of  men 
produces  "  consumable  "  and  "  unconsumable  "  or 
fixed  w^ealth.  They  can  only  consume  part  of  their 
productions,  such  as  food,  clothes,  medicine,  tools, 
utensils,  etc.,  etc..  but  buildings,  fVictories.  mines, 


The  Reform  a  tio  n . 


241 


etc.,  remain  from  generation  to  generation.  Now 
you  have  onl}^  consumed  the  '  use  '  of  the  house 
3^ou  lived  in,  but  not  the  house  itself.  In  the  La- 
bor Exchange  you  may  consume  the  wages  you  get 
in  food,  clothes,  rent  or  pleasures,  but  you  will 
ever  be  partner  in  the  permanent  portion  which 
you  helped  to  produce.  By  the  monetary  S3^stem, 
workmen  produce  all  the  wealth,  consumable  and 
permanent,  but  are  only  allowed  to  use  the  con- 
sumable portion,  and  lose  all  the  fixed  portion. 
By  the  Labor  Exchange  or  Check  system,  the  pro- 
ducers get  both  the  consumable  and  permanent, 
that  is,  the  whole  of  their  products.  You  have  an 
example  in  your  own  case.  Suppose  all  the  work 
you  did  for  the  Association,  had  been  bestowed  on 
one  house,  and  nine  other  persons  had  furnished 
the  materials  and  helped  in  the  work  to  the  extent 
of  $120  each.  It  would  result  that  ten  of  you  had 
furnished  everything  and  built  the  house.  Now 
suppose  each  of  you  lives  in  the  house  one  year,  at 
$10  per  month,  and  pays  an  agent,  appointed  by 
themselves  to  rent  the  house,  the  $120  At  the 
end  of  ten  years,  each  of  the  ten  would  have  lived 
one  3^ear  in  the  house  and  paid  all  his  checks. 
Now  whose  house  would  it  be?  Woukl  it  not  be- 
long to  the  same  persons  ?  They  would  only  have 
consumed  the  wages  part,  in  the  use  of  the  house, 
but  they  would  ji^t  own  the  pernuuient  part,  which 


242 


Tlie  Reformation. 


is  the  house  itself.  Under  the  mone}^  system  a  cap- 
italist pays  out  a  sum  of  money  to  build  a  house;  in 
six  or  eight  years  he  gets  all  the  money  back  in  rent, 
and  then  owns  both  house  and  money.  The  work- 
ers did  all,  and  he  gets  all.  No  wonder  the  capi- 
talists continue  to  add  house  to  hous^.,  and  labor 
continues  to  lose  all  it  makes.  All  the  improve- 
ments in  the  world  have  either  been  done  by  slave 
labor  or  by  the  money  system,  and,  as  a  matter  of 
course,  belong  to  the  capitalists.  Had  they  been 
done  on  the  Labor  Check  plan,  they  would  belong 
to  the  workers.  Let  the  working  classes  choose 
between  the  two  systems.  The  wage  system,  in 
money,  will  keep  them  for  ever  poor ;  the  Labor 
Check  system  will  lead  them  to  wealth." 

''  We  have  yet  another  feature,  in  the  Labor  Ex- 
change system,  which  should  be  highly  prized  by 
the  working  classes.  It  is  the  '  protection  ^  thrown 
around  them  against  prowling  speculators.  Being 
organized  as  a  "charitable''  Association,  our 
charter  does  not  allow  us  to  speculate,  realize  prof- 
its and  declare  dividends.  Some  would  object  to 
this  feature,  but  we  regard  it  as  the  very  foundation 
of  the  institution,  and  the  very  best  for  the  mem- 
bers. They  are  getting  all  the  time  richer  and  no 
speculator  can  rob  them  of  their  permanent  share 
of  wealth  in  the  keeping  of  the  Association.  Sup- 
pose, in  your  case,  that  you  had  sold  your  $120 


The  Reformation. 


248 


Checks  to  a  speculator  for  $60  in  the  consumable 
portion  of  your  wealth.  He  could  have  bought  $120 
worth  of  merchandise  in  the  stores  of  the  Associ- 
ation, while  you,  with  his  $60^  could  only  have 
purchased  $60  worth.  Or  he  could  have  rented  the 
house  you  did,  and  live  in  it  one  3^ear,  while  you 
could  only  have  staid  in  it  six  months.  In  either 
case,  when  his  Checks  had  returned  to  the  Associ- 
ation and  been  cancelled,  we  would  not  recognize 
him  any  longer  as  having  any  further  interest  in  the 
same.  You  had  been  the  original  depositor  of  the 
wealth  in  the  Association  to  the  amount  of  $120, 
and  hence,  when  the  Checks  are  spent  in  consum- 
ables, you  are  the  only  one  we  recognize  as 
owner  of  the  remaining  permanent  part.  Ko  tricks 
of  speculators,  nor  mistakes  of  yours,  can  deprive 
you  and  3^our  family  of  that  part.  Consider,  friend, 
what  immense  difference  it  would  make  in  the  con- 
dition of  the  working  classes  to-day,  if  our  towns 
and  cities,  railroads  and  steamboats,  and  all  per- 
manent improvements,  had  been  built  under  the 
Labor  Exchange  system,  instead  of  the  money 
system.    What  would  the  result  be  ? 

2st.  There  never  would  have  been  occasion  for 
a  day  lost  in  idleness  from  lack  of  mone3^ 

2d.  We  never  would  have  parted  with  any  por- 
tion of  our  products  to  foreign  nations  for  stuff  to 
enable  us  to  exchange  the  balance  left  at  home.  No 


244 


The  Reformation. 


stupid  '  favorable  balance  of  trade'  doctrine  would 
have  been  encouraged. 

3d.  The  true  producers  and  their  descendants,  in 
the-^proportion  of  their  contributions,  would  be  now 
the  actual  owners  of  all  existing  improvements 
and  not,  as  now,  pay  rent  on  the  houses  they  built. 

You  may  now  understand  the  reason  why,  when 
you  worked  for  the  Association  the  first  time,  you 
were  invited  to  join  it.  Being  a  worter,  a  depos- 
itor of  real  wealth,  and  not  a  speculator,  we  were 
anxious  to  put  that  fact  on  record,  so  that  no  one 
else  in  the  future  could  rob  you  of  the  permanent 
part  of  your  deposits.  While  the  Association  can- 
not and  will  never  attempt  to  interfere  with  the 
liberty  of  members  to  sell  the  Checks  or  wages  " 
portion  of  their  work,  it  will  ever  protect  them  in 
the  capital "  part,  which  cannot  be  consumed, 
against  all  contingencies  of  errors,  accidents,  mis- 
fortunes or  dissipation. 

From  the  foregoing,  you  can  comprehend,  friend 
and  fellow  worker,  what  an  immense  reform  is  in 
store  for  the  working  classes  in  the  Labor  Exchange 
Association,  and  you  will  surely  be  convinced  that 
it  contains  the  only  possible  solution  of  the  Labor 
question,  which  is  agitating  the  colony  to-day,  and 
which,  if  left  unsolved,  would  have  lead  into 
revolution." 

"  This  was  explanation  enough  for  me,"  added 


Tlie  Rcfoiinaiion. 


245 


t  iie  carpi^nter,  "  I  came  away  wisin*  and  dc^terniined 
to  devote  eveiT  spare  moment  of  my  timc^,  not  only 
to  work  for,  hut  also  to  advocate  and  forward  the 
cause  of  tlie  Lahor  Exchange. 


At  present  the  Labor  Exchange  is  too  well  known 
to  need  commendation.  It  counts  its  members  b}^ 
millions,  and  its  deposits  reach  hundreds  of  mil- 
lions in  value,  and  embrace  every  conceivable  va- 
riety of  merchandise,  domestic  and  foreign.  It 
owns  and  cultivates  extensive  farms  and  planta- 
tions with  the  most  approved  appliances,  and  in 
accordance  with  the  latest  scientific  discoveries. 
It  runs  dairies,  fruit  canning  establishments,  etc. 
It  owns  and  operates  mines,  smelting  furnaces, 
rolling  mills  and  foundries,  quarries,  brick  yards, 
potteries  and  tile  factories.  It  owns  warehouses, 
elevators,  flouring  mills,  stock  yards  and  packing- 
houses. It  owns  and  runs  hotels,  boarding  houses, 
schools,  colleges,  libraries,  reading  rooms  and  pleas- 
ure gardens.  It  owns  thousand  of  dwelling  houses, 
some  of  the  mostsuperb  business  buildings  in  cities, 
erected  mainly  by  labor  which,  under  the  old  money 
system,  would  have  been  lost  in  involuntary 
idleness. 

The  members  of  the  Association  are  no  longer 
forced  to  tramp  the  colony  in  quest  of  work  ;  nor 
distressed  at  what  may  become  of  their  families,  in 


246 


The  Eejormation. 


case  of  accident  or  death.  The  holders  of  its  Cer- 
tificates are  no  longer  troubled  about  their  ability 
to  purchase  all  they  desire,  money  included,  (for 
the  Association  is  operating  banks  of  Exchange  in 
connection  with  its  Clearing  Bureau).  The  Labor 
Exchange  has  practically  wiped  out  of  the  human 
intellect  the  pernicious  doctrine  that  money  is  nec 
essary  to  human  activity,  prosperity  and  happiness, 
and  that  government  alone  can  issue  it. 

One  of  the  improvements,  original  with  the  La- 
bor Exchange,  and  which  is  just  now  attracting 
public  attention,  is  the  following,  viz. 

Cities  and  towns  in  the  colony,  under  the  legal 
tender,  capitalistic  system,  have  certainly  not  been 
built  for  the  comfort  of  farmer's  wives  and  daught- 
ers, nor  for  female  visitors  in  general.  Women 
were  welcome  to  the  town  for  the  money  they 
brought,"  but,  beyond  this,  they  were  no  object 
for  consideration  b}^  boards  of  trade  nor  boards  of 
health.  Who  had  not  seen  farmers'  wives  drudg- 
ing wearily  along  a  side  walk  in  a  town,  leading  a 
child  by  the  hand  and  visibly  longing  for  home  and 
rest.  There  was  no  place  provided  in  a  town  or 
city  where  tliat  worn  out  mother,  daughter  and 
child  could  rest,  take  a  cool  bath,  adjust  their  toilet, 
eat  the  lunch  the}^  may  have  brought  with  them 
and  attend  to  the  wants  of  the  child.  Surely  pri- 
vate stores  were  not  the  place,  nor  was  standing  by 


The  Rcfonnaiion. 


247 


the  lumber  wagon,  vvliich  brouglit  them  in,  in  a 
back  alley  or  3'ar(l,  a  suitable  place  for  such  neces- 
sary comforts.  Hotels  were  either  too  expensive 
for  their  limited  means,  or  discreditable  for  ladies. 
Ko  one  but  such  women  and  their  husbands  and 
fathers  (*oukl  have  a  correct  idea  of  the  discomforts, 
the  sufferings,  and,  sometimes,  the  permanent  loss 
of  health  and  premature  death  caused  b}^  sucli 
culpable  neglect  on  the  part  of  cit}^  councils  and  cit- 
izens, all  of  wh )  a  see.ned  merely  intent  in  money 
making  and  money  squandering  on  personal  pleas- 
ures. 

The  Labor  Exchange,  composed  largely  of  farm- 
ers, who  felt  mostly  the  above  described  inconven- 
iencies,  with  an  immense  army  of  workers  at  its 
disposal,  with  volumes  of  building  materials  in 
hand,  took  the  above  matter  into  consideration, 
purchased  whole  blocks,  centrally  located  in  sever- 
al towns,  and  erected  thereon  magnificent,  four 
stories,  fire  proof  buildings,  eighty  four  feet  deep 
around  the  block,  enclosing  a  glass  covered  court, 
which  is  used  for  large  assemblies.  The  ground 
floor  of  such  buildings  is  a  vast  bazar,  or  exhibi- 
tion, of  double-decked  stores,  separated  by  two 
rows  of  pillars,  between  which  is  the  grand  prom- 
enade. The  basement,  which  is  connected  by  an 
underground  cable  railroad  to  the  station,  is  used 
for  unpacking  goods,  heating  a])paratus,  and  the 


248 


Tlie  Beformat'wn. 


engines,  whicli  run  the  raachinei\y  of  the  building. 
In  the  stores  is  found  merchandise  of  all  descrip- 
tion. The  merchants,  who  rent  them,  by  mutual 
agreement,  have  assigned  each  compartment  for  a 
special  class  of  goods.  On  the  same  floor  are  also 
restaurants,  hotels,  barber  shops  and  all  such  con- 
veniencies,  as  are  generally  found  in  leading  streets 
of  towns  and  cities ;  but,  in  addition  to  these,  at 
the  four  entr}^  gates,  are  free  sitting,  social  and 
reading  rooms,  free  toilet  and  bath  rooms  for  ladies 
and  gentlemen.  The  three  stories  above  are  occu- 
pied by  almost  ever}^  conceivable  trade  and  profes- 
sion, so  that  the  whole  may  properly  be  called  ^'  The 
Palace  of  Industry  "  containing  business,  educa- 
tion, pleasure  and  comfort  combined. 

Wherever  such  palaces  luive  been  built,  they 
have  become  the  centers  of  business,  the  landing  of 
women  from  the  country,  the  rendezvous  for 
friends  of  both  sexes,  the  attraction  of  youth,  the 
home  of  members  of  the  Exchange  from  all  parts 
of  the  colony. 

Behold  the  giant  which  has  loomed  up  among  the 
industrial  and  financial  institutions  of  the  colony. 
No  other  private  or  corporate  enterprise  can  longer 
cope  with  its  power. 


THE  TRIUMPH. 


And  now,  when  least  expected,  came  a  whisper 
in  the  air,  that  thxC  Governor  was  turning  religious  ; 
that  he  was  constantly  reading  the  Bible  and  seeking 
therein  such  passages  as  in  Isaiah.  Th}^  princes 
are  companions  of  thieves — woe  unto  them  that 
decree  unrighteous  decrees,  to  take  away  the 
rights  of  the  poor.  Woe  unto  them  that  join 
house  to  house,  that  lay  field  to  field,  until  there  is 
no  place.  The  spoil  of  the  poor  is  in  ^^our  houses. 
Thy  silver  has  become  dross.  I  will  make  a  man 
more  precious  than  fine  gold.  For  the  extortioner  is 
at  an  end  ;  the  spoilers  shall  cease,  the  oppressors 
are  consumed  out  of  the  land.  My  people  shall  build 
houses  and  inhabit  them  ;  they  shall  plant  vine- 
yards and  eat  of  the  fruit  thereof.  They  shall  not 
build  arnd  another  inhabit;  they  shall  not  plant 
and  other  eat,"  etc.  He  is  also  searching  the  Few 
Testament  for  anathemas  against  usur3^ 

It  is  rumored  that  his  conscience  is  very  much 
disturbed  by  the  way  he  has  treated  the  colonists, 
driving  millions  of  them,  with  their  wives  and  help- 
less children,  into  the  bleak  desert  of  poverty  and 

(249) 


250 


The  Triumph. 


want,  for  no  other  crime,  than  because  the}^  could 
not  find  gold.  It  is  also  rumored  tliat  he  has 
repented,  and  hints  at  repealing  the  gold  le- 
gal tender  decree,''  and  make  the  road  out  of  the 
prison  of  debts,  as  wide  as  it  has  been  to  fall  into 
it,  viz  :  that  he  aims  to  decree  every  one  of  the 
myriads  of  articles,  which  are  ''legal  tender"  to 
lead  into  debt,  to  be  also  ''  legal  tender  "  to  come 
out  of  the  same.  Again,  it  is  said  that  Adventu- 
rers are  swarming  about  the  Governor's  premises 
and,  for  some  reason,  they  seem  considerabl}^  agi- 
tated.   It  betokened  truth  in  the  reports. 

Hail  the  inspiration  !  It  comes  from  the  common 
father  in  Heaven.  He  has  heard  the  wailings  of 
the  multitude  mortgaged  in  that  horrible  prison, 
and  has  brought  the  Governor  to  repentance.  We 
listen  to  the  reports  with  anxiet}^  and  awaited  the 
result  with  eagerness  ;  when  lo  !  out  came  the  fol- 
lowing 

PROCLAMATION. 

To  our  subjects  greeting : 

Whereas;  The  ''legal  tender"  restriction  has 
been  the  cause  of  all  public  bonds  and  private 
mortgages  in  the  colony. 

Whereas;  Public  bonds  are  a  violation  of  our 
constitution,  which  guarantees  to  the  colonists  "in- 
alienable "  liberty  ;  for  "  bondage  "  and  "  liberty  " 
are  antagonistic  principles,  and 


Tlie  Tr'n(tii}>h. 


251 


Whereas;  mortgages  on  real  estate  discourage 
its  improvements,  and  consequently  retard  progress 
and  prosperity  ;  and 

Whereas ;  Many  of  such  mortgages  are  lield  by 
foreign  Adventurers,  either  directly  or  by  attorneys, 
and  are  a  menac^^i  to  our  sovereignity  and  the  lib- 
erty of  our  people. 

Therefore  ;  In  virtue  of  the  right  of  Eminent  Do- 
main, in  us  vested,  we  decree,  that  all  persons  and 
corporations,  domestic  and  foreign,  holding  bonds 
against  this  colony,  or  any  portion  thereof,  oi' 
mortgages  on  real  estate,  shall,  within  six  months 
from  the  date  of  this  proclamation,  present  the 
same  to  our  colonial  Treasurer  and  receive  pay- 
ment, of  both  principal  and  interest,  in  legal  ten- 
der, non-interest  bearing  Sovereign  Drafts.  And 

All  bonds  and  notes,  not  presented  for  payment 
within  the  said  specified  time,  shall  be  null  and 
I  .  void,  and  debarred  from  collection. 

It  is  further  decreed  tha.t,  at  the  expiration  of  the 
six  months,  as  above  determined,  all  mortgagees 
shall  pay  interest  to  the  colonial  government,  on 
tlieir  respective  debts,  at  the  rate  of  $1.87^  per 
annum,  equal  to  half  one  cent  per  day  on  each  one 
hundred  dollars,  until  the  principal  be  paid.  And 

Whereas  ;  When  a  man  lends  to  another,  he  lends 
only  a  surplus,  which  he  cannot  consume  m^r  use. 

Therefore  ;  Be  it  fui'ther  decreed  that  every  arti- 


252 


The  Triumph. 


cle  of  utility  to  man,  and  everything  which  here- 
tofore has  been  considered  'legal'  for  the  contraction 
of  debts,  shall,  hereafter,  be  held  ''  legal  tender  " 
also,  at  appraised  value,  for  the  payment  of  the 
same. 

It  is  further  decreed  that  all  the  expenses  of  the 
government,  shall  hereafter  be  paid  in  our  sover- 
eign Drafts  upon  the  colonists,  and  that  all  such 
Drafts  be  receivable  b}^  our  officers  in  payment  for 
all  debts,  dues  and  taxes,  at  their  face  value,  and 
that  they  shall  also  be  a  legal  tender  in  payment 
of  debts  among  the  people,  and  that  all  contracts 
for  the  delivery  of  special  articles,  not  in  the  poss- 
ession of  the  contracting  parties,  shall  be  held  to  be 
'option  deals'  and,  ipso  facto,  not  enforcable  by  lav^^ 

The  Governor. 
jThis  proclamation,  short  and  terse,  struck  the 
Adventurers  like  a  clap  of  thunder.  They  became 
terribly  excited  ;  hurried  to  and  fro,  from  bank  to 
bank  and  from  one  attorney  to  another.  What  a 
predicament !  Every  one  felt  that  his  "  revenues  " 
were  at  an  end.  Conclaves  were  at  once  convened, 
in  bank  parlors,  to  protest,  remonstrate  and  devise 
means  of  averting  the  dire  calamity  hanging  over 
them.  At  one  of  these  conclaves  a  vociferous  one 
was  overheard  addressing  the  assembly  as  follows  : 

"  I  always  felt,  gentlemen,  that  we  were  not  safe 
under  a  free  school  system.    I  was  convinced  that 


258 


educated  men  would  no  longer  perform  menial 
services.  I  feared  that  such  men  would  be  concoct - 
ing  schemes,  whereby  to  avoid  labor,  avoid  paying 
their  debts  and  live  in  idleness.  Then  again,  gen- 
tlemen, I  always  feared  this  universal  suffrage 
abomination.  It  is  all  bosh.  What  does  a  clod- 
hopper and  mechanic  know  about  government? 
Hamilton  was  right  in  opposing  it,  v^^ben  our  civil 
government  was  framed.  The  Ancients  never  com- 
mitted the  faults  of  educating  their  serfs  or  giving 
them  a  voice  in  governmental  affairs.  I  have  been 
watching,  gentlemen,  the  result  of  these  two  fatal 
errors.  You  have  seen,  as  I  have,  educated  blath- 
skites,  from  the  laboring  classes,  leave  their  work 
and  tramp  (^ver  the  colon}^  among  mechanics  and 
farmers,  preaching  the  most  abominable  doctrines  ; 
inciting  them  to  disrespect  for  their  superiors, 
and  organizing  them  into  anarchical  Unions.  I 
said  then  that  we  should  put  our  foot  upon  sucli 
Unions  at  once,  and  stamp  them  out  of  existence. 
We  should  have  blacklisted  every  member  of  these 
unions,  and  starve  them  out  of  employment.  They 
are  but  schools  of  communism,  anarchism  and  dy- 
namite, fit  only  for  powder  and  lead."  With  the 
last  expression,  the  speaker  smacked  the  table  in 
front  of  him,  a  hard  knock,  adding  with  a 
higher  pitch  of  voice,  and  the  Governor  is  no 
better,  gentlemen." 


254 


The  Triumph. 


At  such  pitch  the  assembl}^  jumped  to  their  feet, 
stamped  the  floor,  swearing  like  mule  drivers,  hit- 
ting the  air  with  their  fists,  and  mating  dreadful 
threats  against  the  'rascals,'  and  that  'bigoted  fool,' 
the  Governor.  Finally  the}^  got  their  attorneys  to 
draw  up  a  remonstrance  against  the  proclamation. 

It  run  thus  : 

Hon.  Sir  : — "  The  best  portion  of  your  citizens 
are  amazed  at  your  last  proclamation.  They  at- 
tribute it  to  a  stroke  of  superstition,  and,  there- 
fore believe  that,  when  you  return  to  your  reason, 
you  will  not  attempt  to  enforce  such  act  of  vandalism 
against  vested  rights,  and  institutions  made  sacred 
by  the  sanction  of  all  governments  for  centuries. 

But,  sir,  the  very  fact  of  its  publication  has 
already  done  an  immense  harm.  The  benighted 
colonists,  who  happened  to  he  in  debt,  are  drunk 
with  foolish  joy,  believing  that  such  act  of  robbery 
will  be  enforced.  It  may  take  the  army  to  quell 
them  down  and  put  them  to  work  again,  for  this 
class  (debtors),  is  more  numerous  than  you  may 
imagine. 

We  expect,  Hon.  Sir,  that  you  will,  at  once,  re- 
peal said  thoughtless  decree,  and  make  provisions 
to  restore  ''  law  and  order  "  in  the  colon3\ 

Your  best  friends.    The  Adventurers. 

The  reply  that  the  Governor  gave  to  this  remon- 
strance, was  characteristic.    He  wrote  : 


The  Triumph. 


Gentlemen  :  Your  remonstrance  lias  been 
carefully  considered.  The  arguments  tlierein. 
against  m}^  last  decree,  do  not  change,  in  the  least, 
my  determination  to  open  wide  the  prison  of  debts, 
and  bring  forth  m}^  beloved  people  to  liberty.  I 
have  been  heretofore  woiiving  '*  for  the  good  of  a 
few."  I  shall  hereafter  work  for  the  greatest 
good  to  the  greatest  number,"  Because,  piracy  " 
was  carried  on  for  a  long  period,  it  did  not  become 
a  virtuous  occupation.  Because  slavery  was  spread 
all  over  the  earth,  and  lasted  for  centuries,  it  was 
not  made  sacred  by  time,  religion  nor  civil  laws. 
Now  because  ah  iniquitous  monetary  system  has 
enjo3^ed  the  sanction  of  government  and  is  made 
hoary  by  age,  it  does  not  prove  that  it  is  anything 
but  an  iniquity,  worse  than  slavery.  It  lias  per- 
verted the  worship  of  the  true  God  into  the  adora- 
tion of  a  golden  calf.  It  has  separated  our  beloved 
people  into  lords  and  servants,  enabling  the  few  to 
luxuriate  in  idleness  and  crime,  and  dooming  the 
many  to  a  life  of  servitude,  toil  and  misery.  It  is 
useless,  as  pi'oven  b}^^  the  Labor  Exchange  Checks; 
produces  nothing  and  extorts  all.  I  have  deter- 
mined, God  being  my  helper,  to  wipe  it  out  of  the 
Temple. 

The  Governor. 
This  answer  aroused  the  Adventurers  to  fui-y. 
They  organized  their  puny  forces  (they  are  so  few 


256 


Tlie  JYiumph. 


of  them),  into  a  Law  and  Order  League,"  to  at- 
tack the  Labor  leaders  wherever  found. 

We  were  talking,  rather  lively,  to  a  group  of 
friends,  when  some  Adventurers  recognized  us  a 

Labor  Agitator,"  and  one  of  them  advancing, 
^'  you  rascal,"  (this  is  the  title  with  which  highway 
robbers  usually  salute  their  victims,  when  grasping 
them  by  the  collar  or  pointing  a  pistol  to  their  head,) 
''you  blatherskite,  you  communist,"  he  raged  at  us, 
and  shook  his  fist. 

This  volle}^  came  so  suddenly  that  it  threw 
us  off  our  usual  calmness.  We  regretted  it  af- 
terward. But  at  the  moment  our  "temper  got  the 
better  of  us,  and  ''  you  sinners,"  we  replied,  "  you 
worshipers  of  Mammon;  you  have  been  living  in 
idleness  and  luxur}^  out  of  others'  toil,  so  long,  that 
ye  think  ye  have  acquired  the  right  to  do  so  forever. 
You  are  not  aware  that  a  canker  of  greed  is  eating 
your  lieart,  and  are  surrounded  by  an  atmosphere 
of  envy  and  hatred.  You  have  been  heaping  coals 
of  fire  on  your  souls,  here  and  hereafter,  by  your 
extortions  from  the  poor.  Your  pampei'ed  children 
have  imbibed  contempt  for  the  toilers  of  earth, 
and  vent  their  passions  in  vanity,  dibsipation  and 
crimes.  Many  are  the  victims  you  have  strewn  on 
your  path  through  life.  The  cries  of  these  victims 
have  reached  the  throne  of  God.  Hence  this  glo- 
rious reformation.    Nor  do  you  confine  your  op- 


The  Triumph. 


257 


pressions  to  this  life  alone,  but  coiitiiuie  them  from 
beyond  the  grave.  Only  yesterday  one  of  your  con- 
geners died,  leaving  one  hundred  thousand  Florins 
to  be  invested/*  and  the  extorted  ''revenues" 
thereof  to  be  devoted  to  keeping  an  electric  light  in 
his  tomb,  and  another  in  his  grave,  constantly 
burning.  We  have  seen  the  day,  alas!  when  such 
''commands,"  from  the  dead,  were  implicitly  obey- 
ed, and  men  drawn  from  production  to  do  the  work. 
Thank  God,  and  our  good  Governor,  such  a  day 
has  passed,  never  to  return.  There  is  not  a  man 
in  the  colony,  certainly  not  a  member  of  the  Labor 
Exchange,  but  would  have  told  that  wicked  mori- 
bond  of  yours,  to  take  his  Florin^  along  with  him, 
as  future  generations  would  no  longer  need  them  ; 
and  that  the  living  had  resolved  to  be  free  to  min- 
ister to  their  own  comforts  and  enjo^mients,  with- 
out wasting  time  and  means  to  the  service  of  arro- 
gant shylocks  rotting  in  their  graves.  Repent  ye 
generation  of  vipers,  for  the  day  of  judgment  has 
come."  Thus  we  si)oke,  and  the  gathered  crowd 
applauded.  We  regretted  it,  we  said,  because  it  is 
not  generous  to  vilify  a  fallen  foe. 

Finally  the  infuriated  "Law  and  Order  Leaguers" 
accompanied  by  their  attorneys,  started  in  a  body 
to  the  Governor's  palace.  On  ap]  reaching,  they 
heard  bands  playing,  (Adventurers  have  no  bands 
of  their  own).    They  saw  banners  floating.  They 


258 


The  Triumph. 


found  the  square,  iu  front  of  the  palace,  densely 
ci'owded  with  enthusiastic  colonists,  shouting,  hur- 
rahing and  cheering.  They  found  the  Court  and 
Palace  thronged  with  the  bone  and  sinew  of  the 
land,"  gathered  from  farm,  factory  and  mine,  to 
pay  homage  to  their  deliverer.  They  saw  every- 
where the  soldiers  fraternizing  with  the  people. 
They  saw  sights  which  brought  dismay  to  their 
souls.  They  saw  poorly  clad  women,  with  tears  of 
joy  i-olling  down  their  emaciated  cheeks,  leading 
ragged  little  ones,  by  the  hand,  to  let  them  catch  a 
glimps  of  the  New  Moses,  who  had  delivered  them 
from  financial  bondage.  Nay,  they  saw  the  Gov- 
ernor himself,  moved  by  compassion,  his  eyes  moist 
with  tears,  clasping  these  children  in  his  arms  and, 
in  sobs,  imploring  them  to  pray  God  for  him,  that 
He  may  forgive  him  the  wrongs,  that  he  had  done, 
an-l  pariuitted  to  be  done,  to  their  parents.  Yes, 
the}^  saw  enough  to  turn  them  back,  many  of  them 
repentant. 

The  night  of  the  Jubilee  was  spent  in  general 
festivities-  All  the  cities  and  towns  in  the  colony 
were  illuminated.  The  leading  streets,  squares, 
parks  and  public  gardens  were  thronged  with  joy- 
ous people.  Fireworks,  bands,  singing,  balls,  the- 
aters and  shows  everywhere.  The  Industrial  Pal- 
aces of  the  Labor  Exchange  were  festooned  with 
garlands,  inside  and  out,  and  from  ground  floor  to 


The  Triumph. 


259 


the  roof.  (The  Adventurers  had  gone  to  bed 
early).  We  visited  a  panorama  improvised  by  a 
member  of  the  Labor  Exchange.  It  contained 
three  scenes,  representing  the  past  monetary  sys- 
tem and  its  final  ending.  The  first  scene  showed 
a  revolving  mass  of  industry  and  commerce  pai'al- 
ized,  as  drift,  in  front  of  a  narrow  gate,  upon  whicli 
were  inscribed  the  words  Needle's  Eye,"  the  only 
legal  path  to  liberty  and  affluence."  An  expansive 
and  rich  country  was  visible  in  the  distance,  but 
no  way  provided  to  cross  the  legal  "  obstructi(m. 
The  second  view  represented  a  vast,  rich  and  rug- 
ged region,  called  the  Kingdom  of  Legal  Tender 
Credit."  All,  who  had  goods,  were  enticed  to  enter 
this  region,  b}^  leaving  their  goods  in  pawn  at  the 
gate.  A  great  multitude  had  entered  here,  prefer- 
ing  to  risk  this  countr}^,  rather  than  remain  and 
perish  at  the  gate  of  the  Needle's  Eye;  "  and  the 
pawned  goods,  at  the  entry  gate,  were  already 
mountain  high.  Within  that  Kingdom,  there  seem- 
ed to  be  a  life  or  death  struggle  after  fire  flies." 
Thousands  had  abandoned  the  rich  fields  of  pro- 
duction, in  the  chase  after  these  flies.  On  asking 
the  showman  what  virtue  was  in  '  fire  flies,'  here- 
plied  that  there  was  none  whatever,  but  that  tliey 
had  been  declared  '  legal  tender.'  At  intervals, 
but  very  few  flies  could  be  seen  flashing  in  the  air. 
At  such  moments,  the  people  appeared  siezed  with 


260 


TJie  Triumph. 


panic,  as  if  some  dreadful  calamit}^  was  at  hand. 
The  struggle  for  the  flies  wouhi  then  become  really 
fierce,  and  multitudes  of  men,  women  and  children 
would,  immediately^  be  cast  outside  of  the  King- 
dom destitute,  for  having  failed  to  catch  the  requir- 
ed number  of  flies.  The  men  stood  grieving,  the 
women  weeping,  and  the  children  wondering  at 
the  m\7sterious  ways  of  men. 

A  stranger  could  not  have  comprehended  the 
significance  of  such  tragic  scenes ;  but  the  reality 
of  them  was  yet  so  vivid  in  our  memory,  that  we 
trembled,  lest  they  should  return. 

The  third  scene  represented  the  grandest  and 
most  beautiful  landscape  ever  seen  by  mortal  man. 
It  was  a  veritable  Garden  of  Eden.  Immediately 
under  the  observer,  could  be  seen  the  place  where 
the  Needles  Eye  of  legal  tender  had  stood,  now 
blown  to  splinters  by  the  dynamite  proclamation 
of  the  Governor,  and  grey  headed  men  were  search- 
ing, among  the  rubbish,  for  the  fragments  to  store 
away  in  museums.  Far  beyond  this  spot,  marched 
the  grand  army  of  Labor,  evolving  volumes  of 
wealth  as  they  advanced.  Still  further  on,  beyond 
them,  we  could  dimly  discern  the  Governor,  on 
horseback,  chasing  the  Pawn  Brokers  out  of  the 
country.  We  told  the  keeper  that  the  last  sight 
was  wicked.  Altogether  it  was  a  magnificent  sight, 
never  to  be  forgotten. 


The  Triumph. 


261 


On  returning  home,  we  passed  a  squad  of  boys 
intoxicated  with  merriment.  What  is  all  this  re- 
joicing about,  boys  we  asked,  for  curiosity.  "  Do 
you  not  know,  sir?"  querried  one supprised.  "  The 
Governor  has  joined  the  Labor  Exchange,"  he  ad- 
ded. We  felt  amused,  and  went  on  resuming  our 
trtiin  of  thoughts  about  the  wonderful  Reformation 
which  had  been  accomplished  in  so  short  a  period. 
The  long  night  of  chaos,  oppression  and  plunder 
transformed  into  a  bright  day  of  libert}^,  equity 
and  happiness. 

We  were  awaken  next  morning  by  peals  of  can- 
nons, booming  in  the  dawn  of  the  New  Era. 


BENEDICTION. 

We,  who  have  passed  the  whole  of  a  long  life 
with  the  oppressed,  amidst  heart  rending  scenes 
of  misery  and  woe  ;  we,  who,  during  all  those  years, 
lived,  as  it  were,  on  the  borders  of  a  better  land,  in 
full  view  of  a  brighter  day,  from  which  but  a  thin 
fetich  veil  separated  a  gold  benighted  multitude ; 
we,  who,  by  reason  of  this  mental  condition,  en- 
dured greater  agony  in  that  vale  of  despondency 
and  gloom  ;  as  we  now  totter  along  the  corridors  of 
these  Palaces  of  Industry,"  erected  by  the  Labor 
Exchange,  our  soul  exalted  by  the  symphony  of 


262 


Tlw  Triutnph. 


musical  instruments  and  the  glee  of  many  voices, 
made  happy  by  the  Reformation,  rejoice,  in  our  old 
age,  and  from  the  bottom  of  our  heart  i*ise  feelings 
of  gratitude  and  adoration  to  a  benign  Proyidence 
for  having  spared  our  life  and  permitted  us  to  see 
the  Legal  Tender  obstruction  removed  from  the  path 
of  human  progress,  the  metallic  walls  around  the 
purgatory  of  debts,  leveled  to  the  ground,  and 
the  mighty  host  imprisoned  therein,  come  forth  into 
the  Elisian  Fields  of  this  New  Era.  Lo  !  we  liave 
waded  thi'ough  the  trials,"  and  now  it  is  given  us 
to  behold. 

THE   "  TRIUMPH  "  OF  LABOR. 

To  God  be  the  praise  and  glory  forever. 


\ 


UNIVERSITY  OF  ILLINOIS-URBANA 


3  0112  062841124 


